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

Robert A. Green · Nov 1, 2012

Quote from Rantany:

So it seems former MinFin Jan Kees de Jager was the real FTT-opponent. Too bad he is gone. I never trusted PM Rutte on this one, but that he changed his mind so quickly in the negotiations with his new coalition partner is unbelievable. So all his former statements about the danger that this would hurt the relatively big financial center of Amsterdam turn out useless.

Elections matter and we are only one election away from FTT in any given EU country. If Labor or the left gains power in an EU election and in forming a new coalition government, they can demand FTT to join that coalition government. Consider Finland, they just had an election and the National Coalition ruling center-right party did very well. Hopefully, they can continue to hold off efforts from the Social Democrat FM who has been pushing hard for FTT. Losing the Netherlands to FTT hurts here. Hopefully, there will be some major blow back. The left has maximum power to insist on FTT in joining a government versus already being in it - but some power there, too.

If Labour took back control of the UK, a la Gordon Brown, they would rush back to Brussels and maybe pass EC FTT, too. One election away. If the US Dems ever sweep and Republicans don't have a filibuster, and the Treasury Secretary is Elizabeth Warren-like, it could even happen in the US. We finally have some power and that's our vote on Tuesday.

It's fair to say that FTT is gaining ground. Let's see the actual final laws pass and how they work.

tomdavis · Nov 1, 2012

Quote from Robert A. Green:

Elections matter and we are only one election away from FTT...

That's the bottom line: One election is all it takes to impose the FTT and put us all out of business.

Vote wisely.

PARACLESE · Nov 1, 2012

Quote from colonial dr:

Do any of you want the EU to stay together? It will not hurt traders, and it will break apart the most liberal and pro socialist union today. Get rid of the French, and get rid of the Dutch trying to push FTT. Let Britain call the EU part of their country and they can be the ones who tell the Greeks to get their lazy @$$ to work or face prison.

the greeks were the ones showing you how to build plumbing systems while you were throwing garbage out your window and shitting in your backyard. you inconsiderate and ungrateful piece of skata. what have you and your people done for this world?

andohmeeta · Nov 1, 2012

Quote from tomdavis:

That's the bottom line: One election is all it takes to impose the FTT and put us all out of business.

Vote wisely.

Can Romney win? What's your prediction?

andohmeeta · Nov 1, 2012

US U/Secretary for International Affairs Lael Brainard is standing in for retiring Geithner at Mexico's current G20 FinMin Meeting. Could Mr Brainard's deployment to this meeting (fiscal cliff focussed) be any sort of indicator he might be in the running for Geithner's job?

tomdavis · Nov 1, 2012

Quote from andohmeeta:

Can Romney win? What's your prediction?

Romney has a good chance for an upset win, but it's too close to call. (Last time I checked, London bookmakers posted Obama as a 2-1 favorite.)

Republicans will maintain control of the House of Representatives for another two years. The Senate will end up close to a 50-50 split, so filibusters will rule the day no matter which party has the majority.

Republican majority on the House "Ways and Means Committee" gives them control over tax legislation. They can fend off any FTT bills for the next couple of years. If the House of Representatives falls into Democratic control with a Democratic President, we will very likely see FTT legislation as a high priority.

tomdavis · Nov 1, 2012

Quote from andohmeeta:

US U/Secretary for International Affairs Lael Brainard is standing in for retiring Geithner at Mexico's current G20 FinMin Meeting. Could Mr Brainard's deployment to this meeting (fiscal cliff focussed) be any sort of indicator he might be in the running for Geithner's job?

As the Treasury Undersecretary for Foreign Affairs, Lael Brainard made several strong public statements against the FTT (including at the G-20 meeting last summer), saying that most of the FTT tax burden would end up on retail investors and not financial institutions.

Last I heard she was returning to her teaching position at MIT even if Obama is re-elected. However... it would probably be difficult to turn down the Treasury Secretary job if offered.

sheda · Nov 2, 2012

NETHERLANDS â The Dutch pensions industry has welcomed the new government's plan to introduce the financial transaction tax (FTT) with an exemption for pensions funds.

The trading sector, however, has reacted furiously against the so-called Tobin tax, as well as plans to cap bonuses in the financial sector at 20%.

I'm all right jack.

Pasternak · Nov 2, 2012

This attitude is pissing me off: a new tax is all right as long as there is an exemption for themselves. The next time it will boomerang. Why doesn't people think in terms of principles and for the long run?

Robert A. Green · Nov 2, 2012

Quote from tomdavis:

Romney has a good chance for an upset win, but it's too close to call. (Last time I checked, London bookmakers posted Obama as a 2-1 favorite.)

Republicans will maintain control of the House of Representatives for another two years. The Senate will end up close to a 50-50 split, so filibusters will rule the day no matter which party has the majority.

Republican majority on the House "Ways and Means Committee" gives them control over tax legislation. They can fend off any FTT bills for the next couple of years. If the House of Representatives falls into Democratic control with a Democratic President, we will very likely see FTT legislation as a high priority.

Agree with Tom about a Republican filibuster saving the day on FTT. Even if Dems take control of the House, I am not sure they will back FTT bills. Pelosi and other top Dem leaders of the House didn't like FTT in the past. But, if FTT snowballs in the EU, they could change their tune to be "in line" globally. Senate leaders don't like FTT, either including financial-market senators like Durbin and Schumer, the Wall Street Senator.

I covered the politics of tax changes after the election in my last blog.
Year-End Tax Planning with the Fiscal Cliff
http://www.greencompany.com/blog/index.php?postid=169

Been in CT without power but a generator the last week. Warm but little Internet. City is too crazy to go to my apt with traffic. Hard to believe they can run the election in much of the northeast on Tuesday. Been out of the political loop.