Make no mistake if they impose some kind of stamp tax on shares futures and derivatives arn't far behind (IMHO). Once they tax shares that opens the door to tax everything...
-Guru
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Make no mistake if they impose some kind of stamp tax on shares futures and derivatives arn't far behind (IMHO). Once they tax shares that opens the door to tax everything...
-Guru
Of course, I don't feel safe at all( and ultimately I will leave France, just not now...). France is indeed preparing a tax on futures as well in its temporary tax, but it will on french futures and not on french people trading foreign exchanges.
Even politicians are understanding that enforcing a tax based on residence is close to impossible, they would have to review tons of trades and daily face values and calculate a FTT after the fact. It would be a nightmare for them and ultimately banks would just close foreign desks as they can't compete on FTT free markets.So it's just plain stupid.
Once they get a foot in the door, there will be no stopping it.
Here's what EU Tax Commissioner Algirdas Semeta said about the tax rate-setting strategy: "The moment in which we introduce a tax on financial transactions, of course, everything looks different. Then we can also raise the tax rates."
There are just getting a foot in the door they decided to repeal 4 years ago in France and I don't remember when in Germany. It's laughable if you think about it. They want to create a precedent in creating a tax they just repealed. If that's not moronic, I don't know what is...LOL.
There is nothing new in stamp tax. They have been tried and failed all over the world for a long period. It only works when banks don't pay it. The only thing that was new here was this "residence"thing and finally it seems like they are abandoning it.
I wonder if their planning on modeling their stamp tax after the UK version? Or do they plan to not have the exemtions that the UK does somehow? That would basically make if a full blown ftt but in a different wrapper. I have no idea so I'm just throwing this out there.
These frantic last minute changes in FTT, stamp duty, stamp-duty plus, from EU-wide, to euro-zone-wide, to EZ 9+, to France only, to UK veto and stand-off ALL shows desperation and trouble for FTT proponents passing these significant tax-hike plans.
While at the same time, Europe teeters further over PIIGS and contagion. The outlook is still bleak with further austerity and lack of sufficient bailouts too.
So, the leaders are in a catch-22. On one hand, they want more tax money out of financial services, and to curb traders and banks, and focus them on supporting sovereign debt. On the other hand, banks and in trouble with downgrades and that same toxic sovereign debt, so taking money out of their hides defeats the purpose, meaning they will then need state bailouts.
So allowing banks out of FTT is convenient now that they are trying to reconcile with the UK on stamp duty, with the PLUS.
The UK has already said leave us out of it, we are not changing what we do and not turning over our stamp duty tax revenues to Brussels.
This does leave an opening for a coalition of the EU or euro zone willing on a stamp duty, with perhaps the PLUS.
The PLUS sounds like more fiscal-compact penalties to rein in the type of trading the EU leaders don't want. The UK will probably say no to that too. The exchanges won't be happy losing all that business from auto trading and HFT, either, including the Deutsch Bourse, who is now nursing their wounds after the failed NYSE Deutsche Bourse merger.
What we have going for us is that stamp duty anywhere is a mistake and obsolete. The UK should repeal it, but they can't at this time with populist outrage against banks. And, FTT is ludicrous. In the end, its more likely they will come to their senses and skip FTT, rather than plunge Europe further into crisis. But, I don't put that past them either.
The stamp-duty-Plus troubles me, but I think we should still be okay, for now. Let's see further developments of course.
While at the same time, Europe teeters further over PIIGS and contagion. The outlook is still bleak with further austerity and lack of sufficient bailouts too.
So, the leaders are in a catch-22. On one hand, they want more tax money out of financial services, and to curb traders and banks, and focus them on supporting sovereign debt. On the other hand, banks and in trouble with downgrades and that same toxic sovereign debt, so taking money out of their hides defeats the purpose, meaning they will then need state bailouts.
So allowing banks out of FTT is convenient now that they are trying to reconcile with the UK on stamp duty, with the PLUS.
The UK has already said leave us out of it, we are not changing what we do and not turning over our stamp duty tax revenues to Brussels.
This does leave an opening for a coalition of the EU or euro zone willing on a stamp duty, with perhaps the PLUS.
The PLUS sounds like more fiscal-compact penalties to rein in the type of trading the EU leaders don't want. The UK will probably say no to that too. The exchanges won't be happy losing all that business from auto trading and HFT, either, including the Deutsch Bourse, who is now nursing their wounds after the failed NYSE Deutsche Bourse merger.
What we have going for us is that stamp duty anywhere is a mistake and obsolete. The UK should repeal it, but they can't at this time with populist outrage against banks. And, FTT is ludicrous. In the end, its more likely they will come to their senses and skip FTT, rather than plunge Europe further into crisis. But, I don't put that past them either.
The stamp-duty-Plus troubles me, but I think we should still be okay, for now. Let's see further developments of course.
The logic against a stamp duty is already underway:-
http://www.fundweb.co.uk/uk/tobin-tax-vs-stamp-duty-both-are-worse-says-bdos-crean/1045122.article
No detail as yet. Strategy can be tweaked accordingly.
http://www.fundweb.co.uk/uk/tobin-tax-vs-stamp-duty-both-are-worse-says-bdos-crean/1045122.article
No detail as yet. Strategy can be tweaked accordingly.