1/4% Tax on all stock trades pushed in NY Times today

Good post Robert as always. Here's a start:

Stamp duty: its impact and the benefits of its abolition
May 2007

http://www.oxera.com/main.aspx?id=5938

Commissioned by the Association of British Insurers (ABI), City of London Corporation, Investment Management Association (IMA) and London Stock Exchange, this independent Oxera analysis assesses the impact of stamp duty on individuals, companies and the wider economy.

Stamp duty is levied on market participants that are not registered as financial intermediaries at a rate of 0.5% of the value of purchases of UK listed companies. The study considers the effects of abolition of stamp duty, and concludes that stamp duty has a potentially damaging impact on individuals, companies and the wider economy.
 
The new EU Council President, Denmark, kicked the FTT to the curb their first day in office. Three cheers for the Danes.

Here's some more good news. The EU Council Presidency rotates every six months. The next two EU Presidents after Denmark are Cyprus and Ireland, both of whom have said that without the UK fully on-board the FTT is DOA. For the next 18 months, the rotating EU Council Presidency will be controlled by anti-FTT countries.
 
Quote from tomdavis:

The new EU Council President, Denmark, kicked the FTT to the curb their first day in office. Three cheers for the Danes.

Here's some more good news. The EU Council Presidency rotates every six months. The next two EU Presidents after Denmark are Cyprus and Ireland, both of whom have said that without the UK fully on-board the FTT is DOA. For the next 18 months, the rotating EU Council Presidency will be controlled by anti-FTT countries.
More...

Thanks Explorer and Tom.

Our new battle cry is revised to 'FTT is bad policy because it principally falls on retail investors, pensions and hedgers. Stamp duty tax, or exchange tax is even worse because it entirely falls on retail investors, pensions and hedgers.'

Stamp duty in the UK has many exemptions and holes and active investors use non-tax vehicles, not shares. Duplicating the UK scenario is unfeasible on the EU level, and considering this tax will seriously disrupt markets and financial industry in the same way that FTT would too.

Stamp duty is a mistake at this juncture for even the UK, and the EU should not consider this archaic and illogical tax. They won't get unanimous consent for it either, with Sweden and others probably saying no. Share trading will move to American and Asian exchanges.

The EU should focus on tax policy that spurs growth and tax revenues, not ancient tax policy that will retard business, investment, growth and tax revenues.
 
Quote from Explorer:

Good post Robert as always. Here's a start:

Stamp duty: its impact and the benefits of its abolition
May 2007

http://www.oxera.com/main.aspx?id=5938

Commissioned by the Association of British Insurers (ABI), City of London Corporation, Investment Management Association (IMA) and London Stock Exchange, this independent Oxera analysis assesses the impact of stamp duty on individuals, companies and the wider economy.

Stamp duty is levied on market participants that are not registered as financial intermediaries at a rate of 0.5% of the value of purchases of UK listed companies. The study considers the effects of abolition of stamp duty, and concludes that stamp duty has a potentially damaging impact on individuals, companies and the wider economy.
More...

Excellent reference Explorer, thanks. I'll read it and use it in my writing.
 
Quote from Explorer:

Sarkozy Sticks With Transaction Tax Amid Report of Share Levy

http://www.businessweek.com/news/20...ransaction-tax-amid-report-of-share-levy.html
More...

Bank of France Governor Noyer said FTT must be EU-wide and there are many problems with the FTT proposal. Wise man of finance and the bank governor has lots of power historically in France. http://en.wikipedia.org/wiki/Bank_of_France.

In my view, this means FTT is very unlikely in France, no matter how much Sarkozy campaigns and pontificates.
 
UK rejects German 'olive branch' of exchange tax

German economic minister Philipp Roesler on Friday floated a European "bourse tax" as a compromise to a wide-ranging financial transactions tax (FTT) that would hit London harder than other European financial centres and make the City less attractive as a global business centre.

Chancellor Angela Merkel's spokesman called the idea "sensible". Speaking ahead of Monday's eurozone financial ministers summit, he said: "[Mr Roesler] is looking at all possibilities for getting the UK on board... We need to find out in talks whether a bourse tax could be a bridge for the UK, then Germany will discuss this with its European partners."

No details have emerged how such a scheme, which could fund economies reeling from the eurozone debt crisis, could work. However, it might be similar to the 0.5pc stamp duty on share trades already in place in Britain, which is levied on the investor. A similar scheme could be introduced across all of Europe.

But the proposal is unlikely to win No 10's backing. Last month the Prime Minister blocked European legislation aimed at defusing the eurozone debt crisis after failing to win safeguards for the City.

[...]
More...

There is also an ECOFIN meeting of European finance ministers next Tuesday. Probably we'll find out more then.
 
I think our thread is a powerful answer to No FTT and it should be accessible to the public, especially decision makers who are weighing FTT proposals and who can harm us with bad-decision making. I am not saying to advertise this thread, but we shouldn't go out of our way to hide it either.

We are professional, and we don't libel people or use profane language (much) or call people or countries bad names. We give lots of links, support and rebuttals and they are very valuable to our cause. Others and I share our latest thoughts here and we can't possibly spread or post them everywhere.

I also think that all of us should spread each other's comments, when we like them. Cut and paste and consider our posts to be open-source cooperation and content. Sort of a Wiki on No FTT.

I think this will help us win fighting off FTT or stamp duty, and not harm us. But, we need to keep it clean and professional, which we should do anyway.

In the past, most have said we should stay low key and private. Our opposition is anything but, and they are very loud, vocal, organized, and in the streets, parading economists left and (not) right.
 
Quote from Robert A. Green:

I think our thread is a powerful answer to No FTT and it should be accessible to the public, especially decision makers who are weighing FTT proposals and who can harm us with bad-decision making.
More...

Your idea is on the right track, but this forum is not the place for most people to get their FTT questions answered.

Twice I have referred people to this thread, and both times they came away overwhelmed and confused. There's too much information here and it's not organized in a way that an outsider can follow it.

I agree wholeheartedly with you that we need a place (e.g., website) to send interested parties where they can see anti-FFT arguments presented in a succinct and organized manner. Pro-FTT sources have littered the WWW with specious arguments in favor of the tax, and we need to have a strong answer to their lies. This thread is not that answer because the information here is not organized in a way that answers peoples' questions.

A logical discussion of the FTT boils down to a few basic points:

1. Who really ends up paying the FTT.
2. What effect does the FTT have on economic growth and unemployment.
3. Why the FTT won't provide billions of dollars to end poverty and global warming. (aka, Why the FTT is a net negative tax.)
4. Why the FTT won't stabilize financial markets.
5. Where in the world do countries oppose the FTT and why do they oppose it.


Unions are making the FTT a "money-and-votes" issue in the 2012 election. They are currently recruiting academics around the world and across the country to write pro-FTT papers.

Our well-reasoned and researched response has to prove that arguments in favor of the FTT are based on academic/socialist fantasies, not on logic or facts. Ideally, we would have something in place before the election heats up next summer.
 
Quote from tomdavis:

Your idea is on the right track, but this forum is not the place for most people to get their FTT questions answered.

Twice I have referred people to this thread, and both times they came away overwhelmed and confused. There's too much information here and it's not organized in a way that an outsider can follow it.

I agree wholeheartedly with you that we need a place (e.g., website) to send interested parties where they can see anti-FFT arguments presented in a succinct and organized manner. Pro-FTT sources have littered the WWW with specious arguments in favor of the tax, and we need to have a strong answer to their lies. This thread is not that answer because the information here is not organized in a way that answers peoples' questions.

A logical discussion of the FTT boils down to a few basic points:

1. Who really ends up paying the FTT.
2. What effect does the FTT have on economic growth and unemployment.
3. Why the FTT won't provide billions of dollars to end poverty and global warming. (aka, Why the FTT is a net negative tax.)
4. Why the FTT won't stabilize financial markets.
5. Where in the world do countries oppose the FTT and why do they oppose it.


Unions are making the FTT a "money-and-votes" issue in the 2012 election. They are currently recruiting academics around the world and across the country to write pro-FTT papers.

Our well-reasoned and researched response has to prove that arguments in favor of the FTT are based on academic/socialist fantasies, not on logic or facts. Ideally, we would have something in place before the election heats up next summer.
More...

Well said thanks. Our thread is more like a media blog covering an event with play-by-play updates. It's a different way to access information, based on events and links as they unfold, rather than an organized anti-FTT-position site. It's a challenge to do that, and very costly in terms of time and effort. We have this thread as a play-by-play and I still think its valuable, and useable to the public. It's not private anyway. Perhaps, we can refer to posts and explain what this thread is - a blow-by-blow grassroots information and idea sharing thread.
 
You must log in or register to reply here.
Back
Top