And have you seen that the accounting , calculations of taxes owed will have to be done by the institutions themselves monthly... Not only euro finance would be screwed, it will have to keep their own compliant book of the screwing...LOL
And one last time, I don't understand how the residence principle would be beneficial and why member states would accept it...Let's say Deutsche Bank has a killer desk in Hong Kong, they would be out of HK business overnight with a 0.01% tax, you can't compete with someone paying 10$ less even in your wildest dreams...What is the profit for Germany closing this super profitable desk?
Seriously, they are even optimist when they say it will apply coming 2016. There are years of trials, debates, tweakage of the proposal ahead, hundreds of millions in taxpayer's money and time wasted. I think Germany( the only one that matter in EC11 ) will ask for changes soon...
don't know if this has been posted... http://www.quantifiedstrategies.com/implications-of-a-transactions-tax/ the FTT will cost 4 times more than the income. Sweden implemented a FTT in the 80âs with catastrophic qonsequences: close to 85% of trading moved abroad and capital gains taxes plummeted drastically. In the end they found out this was a very expensive tax. Sweden expected to collect 1,5 billion SEK, but instead only fetched 50 million SEK a year. Swedenâs finance minister, Anders Borg, has said that âwe have substantial evidenceâ¦And from the swedish perspective, we cannot foresee that we would introduce such a tax system againâ.
\ I wish the author's grasp of the plural was a bit more...robust. Grammatical issues notwithstanding, it's an excellent piece. Thanks for posting.
"Exclusions The proposals exclude certain types of trading from the scope of the tax: day-to-day transactions by individuals and non-financial firms" So no worries for day traders , right ?