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

Rethinking the Distortions of Banking - NYTimes.com
http://www.nytimes.com/2012/03/26/business/global/26iht-dixon26.html?_r=1

A call to bury FTT proposals from an industry insider published in the NY Times - finally! - and this Reuters Breakingviews writer makes a case for FAT instead. Or, VAT on financial services, but not trading per see. The writer points out the tea leaves in Europe show the Robin Hood tax is dead. _Can European banks, still choking on PIIGS debt, pay FAT? Banks aren't where the money is, it's where the sovereign debt losses are hidden. EU politicians should stop licking their chops when they look at banks, stop the endless discussions on taxing banks, and focus on fixing their underlying problems instead.
 
Quote from Explorer:

Schäuble Eyes 'Extended' Stock Market Tax

http://www.tax-news.com/news/Schuble_Eyes_Extended_Stock_Market_Tax____54642.html
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So it sounds like this extended stock market tax is just another name for the stamp duty on shares correct? If thats the case it still makes no sense to me as just last week Schaeuble ruled out a stamp duty tax. Plus I don't see the EU or EZ agreeing to a stamp duty.

Still way too many mixed signals coming from Brussels. It sure sounds to me that the ftt idea has been buried at the EU and EZ level and the next discussion will turn to a direct tax on the banks (ie FAT tax, etc).

This from last weeks WSJ:

Mr. Schäuble ruled out the idea of imposing a British-style stamp tax on stock purchases, but said Europe needed to find alternatives that included regulation of derivatives and high-frequency computer trading. "We will try to achieve what is possible," he said, according to the participant.

-Guru
 
(google translation)
[...]For the German Finance Minister Wolfgang Schäuble (CDU) Plans for a European tax on financial transactions has now finally abandoned. Even a modified stock transfer tax on the British model as an alternative to the controversial tax on financial transactions was not feasible at the European level, Schäuble said in Berlin on Monday evening. He aspires to, and any regulation within the European treaties in the way of enhanced cooperation - for example, to reduce high frequency of instantly trading on the stock exchanges.[...]

http://kurier.at/wirtschaft/4490107-schaeuble-wischt-transaktionssteuer-vom-tisch.php
 
BERLIN: Finance Minister Wolfgang Schaeuble conceded for the first time on Monday that efforts to get a financial transaction tax implemented in the euro zone were doomed.

"We just can't get it done," Schaeuble said in Berlin. Schaeuble expressed hope that some countries in the European Union would begin implementing an enhanced stamp duty, including derivatives, this year but admitted that this would not be possible in the broader bloc.

Last week the Netherlands rejected the proposed financial transaction tax, dealing a heavy blow to the Franco-German bid for a levy to replentish government coffers hit by the financial crisis.

http://economictimes.indiatimes.com...-euro-zone-wont-work/articleshow/12419337.cms
 
Quote from Explorer:

BERLIN: Finance Minister Wolfgang Schaeuble conceded for the first time on Monday that efforts to get a financial transaction tax implemented in the euro zone were doomed.

"We just can't get it done," Schaeuble said in Berlin. Schaeuble expressed hope that some countries in the European Union would begin implementing an enhanced stamp duty, including derivatives, this year but admitted that this would not be possible in the broader bloc.

Last week the Netherlands rejected the proposed financial transaction tax, dealing a heavy blow to the Franco-German bid for a levy to replentish government coffers hit by the financial crisis.

http://economictimes.indiatimes.com...-euro-zone-wont-work/articleshow/12419337.cms
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Well great news indeed. It seems as though finally Germany has thrown in the towel on the ftt (hopefully for good). I think it's now clear that Schaueble's extended stock market tax is indeed a stamp duty on shares and derivatives. It seems as though that idea too is DOA. I still wonder why Schaeuble was quoted in the WSJ last week as not being in favor of a stamp duty (LOL) when clearly he's pushing for one. Whatever I guess. Either way this is great news as most likely the same countries (if not more) that opposed the ftt will oppose this enhanced stamp duty...

-Guru
 
Quote from listedguru:

Well great news indeed. It seems as though finally Germany has thrown in the towel on the ftt (hopefully for good). I think it's now clear that Schaueble's extended stock market tax is indeed a stamp duty on shares and derivatives. It seems as though that idea too is DOA. I still wonder why Schaeuble was quoted in the WSJ last week as not being in favor of a stamp duty (LOL) when clearly he's pushing for one. Whatever I guess. Either way this is great news as most likely the same countries (if not more) that opposed the ftt will oppose this enhanced stamp duty...

-Guru
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I wonder if he is being forced to push for this extended stamp duty by the SPD and Greens in his coalition.

He needs their support for Germany to sign the fiscal compact, but they are making an FTT a pre-condition for their support (even if it's just applied in Germany).

The SPD/Greens want a full-blown FTT and insist a stamp duty isn't enough. But an FTT at eurozone level or higher isn't possible and the eurozone level is the the "smallest thinkable size" according to Schaeuble. He can't deliver the FTT his coalition partners demand.

Maybe Schaeuble thinks that making a show of pushing for stamp duty but adding derivatives too may be enough to get the SPD/Greens off his back, even though he knows this idea will be opposed too.

When the SPD/Greens see no support for the extended stamp duty they may become more realistic and back down and sign the fiscal compact anyway.
 
Quote from Explorer:

I wonder if he is being forced to push for this extended stamp duty by the SPD and Greens in his coalition.

He needs their support for Germany to sign the fiscal compact, but they are making an FTT a pre-condition for their support (even if it's just applied in Germany).

The SPD/Greens want a full-blown FTT and insist a stamp duty isn't enough. But an FTT at eurozone level or higher isn't possible and the eurozone level is the the "smallest thinkable size" according to Schaeuble. He can't deliver the FTT his coalition partners demand.

Maybe Schaeuble thinks that making a show of pushing for stamp duty but adding derivatives too may be enough to get the SPD/Greens off his back, even though he knows this idea will be opposed too.

When the SPD/Greens see no support for the extended stamp duty they may become more realistic and back down and sign the fiscal compact anyway.
More...

I think you might be onto something here. Your theory sounds very plausible to me. Either way it sounds like Schaeuble finally sees the writing on the wall and knows that the ftt idea is DOA (as is the stamp duty). Hopefully they will formally kill and bury the ftt at the fin min meetings in Copenhagen this week:)

-Guru
 
The People's Budget
Budget of the Congressional Progressive Caucus Fiscal Year 2013

Wall Street Gaming Tax. This policy would enact a tax on derivatives, credit default swaps, and other exotic financial products, including both sides of futures and forwards, option premiums and foreign exchange spot transactions. This is a tax levied directly against the types of opaque, complex trades that Wall Street manipulators used to inflate their profits and were a direct cause of the financial crisis. This policy would use tax base and rates as follows: stock transactions at 0.25%, bond transactions at 0.004%, option premiums at 0.25% per year to maturity, foreign exchange transactions at 0.004%, and futures and swaps at 0.01%
http://grijalva.house.gov/uploads/Executive Summary FINAL.pdf


Caucus Members
http://cpc.grijalva.house.gov/index.cfm?sectionid=71
 
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