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

Mr Johnson stated: “Non, nein, no! I will not allow jobs, growth and the livelihoods of Londoners to be jeopardised by an unholy alliance of European states who view financial services as an easy target, despite the fact that it is crucial to the economic recovery of all its members.

“Do they not understand that our crucial wealth providers will be on the first flight out to join our competitors in the US and Far East if their ill thought out plans succeed?

“That would be a catastrophe for the Union and its citizens who are already reeling from the fallout from the failing Euro project.”
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Amazing Boris!


http://www.london24.com/news/busine..._for_financial_transaction_tax_push_1_1208419
 
What would be the effect of the proposed transaction tax on Life Insurance Guarantees?

The introduction of transaction taxes can become expensive for the insurances. Using a simple transaction cost model, we can compute that a hedging strategy which cost 2.0% p.a. now will cost about 2.2% p.a. after the introduction of 0.1% transaction tax. This is a raise of 10% in insurance fees.

These results ~ where the customer pays 100 € per months over 40 years would lose about 10%. That means at maturity of the contract the customer receives 135,000€ instead of 149,000€. Another similar result is given in my study about Constant Proportional Portfolio Insurance (CPPI) under Financial Transaction Tax, which shows that the upside potential of the customer is hit dramatically – up to 50%.
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http://computeraidedfinance.com/201...d-transaction-tax-on-life-annuity-guarantees/
 
EU eyes March decision time for transactions tax

Later this week, the European Commission's top tax official, Algirdas Semeta, will visit London to attend a hearing in the House of Lords about his contested proposal. He will not see a British minister during his visit.

"He will go with the message that the Commission wants Britain on board and believes it would benefit," said one official, talking on condition of anonymity. "He hopes to put fears about the impact of the tax to rest.
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http://www.reuters.com/article/2012/02/14/eu-transactionstax-idUSL5E8DE2JN20120214
 
According to Chancellor, Austria could go it alone, even without EU or Eurozone.

http://diepresse.com/home/wirtschaf..._backlink=/home/wirtschaft/economist/index.do (German)

(Google translation)

Faymann will at least do not rule out that Austria could introduce the tax on financial transactions alone. Experts believe that this is absurd.

Vienna. Chancellor Werner Faymann (SPÖ) considers it possible that Austria's financial transactions tax also introduced, if it is not implemented at EU level or in the euro area. This is not unthinkable, the chancellor said on Tuesday after the Council of Ministers. But this was only the second-best option, because the tax would bring much less money than planned. Vice Chancellor Michael Spindelegger (ÖVP) agreed with the Chancellor: "Exactly." Spindelegger A spokesman said later, however, compared to the "press", the Vice-Chancellor only wanted to confirm that the international version would be good. Even a spokesman reassured Faymann: You say at the moment neither yea nor nay to a tax on the national level just leave, but this model to calculate precisely.
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Absurd, Austria has already included EU-wide FTT revenues in their new budget plans:
http://www.boerse-express.com/pages/1225995 (German)
 
Quote from sheda:

http://www.reuters.com/article/2012/02/14/eu-transactionstax-idUSL5E8DE2JN20120214
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"A decision by ministers could draw a final dividing line between those countries that oppose the tax and those that back it, leaving those that chose to do so free to set up their own scheme."

Earlier this month, nine countries, including Germany, France, Belgium, Italy and Austria wrote to Denmark urging it to "accelerate the analysis and negotiation process" on the issue.

These nine countries would be sufficient in number to launch their own tax through a procedure known as enhanced cooperation.

Let's hope Denmark puts this on the calendar for a vote in March and then we can really see where everybody stands. As we've already discussed it's doubtful that all 9 countries that recently wrote to Denmark to speed up the process are for the tax therefore using enhanced cooperation seems fishy...

-Guru
 
Quote from sheda:

http://www.reuters.com/article/2012/02/14/eu-transactionstax-idUSL5E8DE2JN20120214
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This line is pretty interesting:

"As the proposal now stands, it is the location of the individual or bank buying or selling the asset that triggers the tax. So a bank established in Germany, for example, buying shares in New York would be obliged to pay."

"If there is any link to the EU, either through the buyer or seller, then the tax will fall due. That means that a U.S. bank selling to a buyer in the EU will also have to pay."

I wonder what the US thinks of this? I mean I guess it's possible that this EU tax could fall on individual US traders if someone from the EU is involved as a counterparty of one of our trades? Or am I mistaken here?

-Guru
 
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