don't be so smug. if they were no action socialists the euro would not be falling apart at the seams and Europe would not be becoming part of the Caliphate. additionally underlying economic conditions in the US are predictors of great future difficulties.
The euro is falling apart at the seams. Huge unemployment (particularly youth). Greece an absolute disaster and Italian and now German banks in huge difficulties. There are massive economic issues around the globe. Not just Europe. But as someone that lives in Europe having the Brussels bureaucracy machine behind the scenes does not fill me with confidence. Even the fact they could think a tax on trading won't impact liquidity in the markets or that these costs won't get passed on to savers/mortgage holders/pension holders is mad.
I quite get your point, and I'm glad I don't live in Europe. When is the last time you associated sanity with Brussels?
in their minds the FTT will pay for the bailout of Deutsche bank, the Italian banks and the resettlement of millions of muslim migrants and other wasteful schemes of the Left. can the US be far behind in attempting to impose a tax? the goal is to impose the smallest tax possible to get "the camel's nose under the tent." then to raise it just like VAT taxes.
But all their numbers are based on taking current volumes and multiplying that by the proposed tax. They haven't worked out the millions if not billions they will lose out in capital gains/coorporate tax as half the traders leave the markets. Day trading will be non existant with $10 a round turn. I'm no advocate of HFT's but nobody will be market making with trading costs like that. Imagine Fidelity or some other huge mutual fund doing month end extensions for mom and pop pension portfolios when the bid offer is 2 ticks wide and 300 lots on offer.
Late on Monday the finance ministers of the 10 countries considering adopting the financial transaction tax, or FTT, held a meeting in Luxembourg on the sidelines of a regular gathering of euro zone ministers. They supported the text prepared by Schelling, who also chairs the group. That text, seen by Reuters, set out general principles. Initially, only shares originated from the participating countries would be taxed but after a transitional period a common tax would be applied to all shares - an idea that may not go down well in Britain, which fears the impact on trades in the City of London. All derivatives transactions would be taxed except repos, reverse repos and the transactions of public debt managers, the text said. The text indicates no common tax rates and still misses out important technical details on how to apply the levy, which will all need to be clarified in later talks. ------------------- http://www.reuters.com/article/eu-tax-idUSL8N1CH3GH
"Initially, only shares originated from the participating countries would be taxed but after a transitional period a common tax would be applied to all shares - an idea that may not go down well in Britain, which fears the impact on trades in the City of London." Good luck getting the above to work, lol. I can't believe they are still trying to get this thing off the ground after all these years. I'd still be very surprised if this ever comes to fruition. And I'd be shocked if it didn't blow up in their faces if they ever do get it implemented. This has disaster written all over it. -Guru
This bloomberg piece has a little more color on the situation: http://www.bloomberg.com/news/artic...ision-on-eu-financial-transaction-tax-in-2016 “The countries that had reservations last time have withdrawn them, so some countries now want to take a look at the possible consequences of the text” that will be drawn up by the European Commission, Schaeuble told reporters on Tuesday. “We want to have a decision by year-end, a positive one, if possible.” The 10-nation group agreed that the European Commission, the EU’s executive arm, will present draft legislation before the end of the year and further analysis will be done on the potential impact of the tax, including on pension funds, Austrian Finance Minister Hans Joerg Schelling said. “It’s the first time we really have a clear agreement from all the countries on proposals that are precise," French Finance Minister Michel Sapin said. The work that’s been done “reassured the smaller countries, such as Slovenia and Slovakia,” he said. Under the Austrian proposal, “harmonized taxation” would initially be applied to transactions of stocks issued in one of the participating countries. “All shares” would be taxed after a transition period “unless participating member states decide otherwise.” The tax would cover “all derivatives,” though initially products “with public debt to 100 percent as direct underlying” would be exempt. Repurchase agreements, which are used for short-term financing, as well as transactions of public debt managers would also be excluded. Market makers, who provide liquidity, would be subject to reduced tax rates.
What I don't understand is why the taxes on capital gains are not enough? If they are too small then how could traders pay any other taxes?