"She said Germany would fight for a Europe-wide financial transaction tax by 2012, and suggested that it would bring an extra â¬2bn a year to the German budget. The German thinking is to have a tax on all financial transactions, including computer trading and derivatives. The aim would be to include all high-speed transactions, rather than simply levy a tax on turnover. Although it is not expected to reach any agreement at the G20, Germany plans to push for an EU decision. If that is blocked, for example by the UK, Berlin will try for a eurozone transaction tax." http://www.ft.com/cms/s/0/0f9548c8-7256-11df-9f82-00144feabdc0.html $2 billion, or even $6 billion, is not much if spread across all types of instruments: stocks, bonds, fx and derivatives, so it shouldnt be a huge amount per share or contract. However it will effect high frequency traders, scalpers and market makers the most unless they get an exemption. The other worry would be that once introduced they will increase it over time.
there is no such thing as low or very low. a transaction tax even seemingly as low of .001 will eliminate day traders.
Work for 20 years, retire for 50... with hard working Germans paying for your retirement. Greece. What a country!
It won't last very long once repubs retake the house, then you can bet they and most U.S citizens have Obama in their crosshairs in next pres election, after which these "tax the rich" strategies will be repealed. A lil patience and perseverence will get us a long way....
There's NO support for such a tax in the U.S. The U.S. Senate is probably 98 against; 2 for. Meanwhile in the HOR there's virtually no support, possibly a few "fringe" social democrats. Basically, here's how it is. I grew up in New York and live/work in Chicago. I've been around the US financial power centers. Those fellas control the legislation. There will be no new taxes on trading. It's bad for the U.S. capital markets and most politicians know who they Daddy is because Momma said so. The financial transaction tax is dead on arrival. But expect some to keep talking about it for a while. ------------------------------------------------ As an aside, I like what I'm hearing from ambitious Republican candidates (who years ago I wouldn't have favored) talking tough on further deficit spending and wastefulness, i.e. "austerity" if you will. I like these guys because they're the thought leaders who will take us into this next serious recession where we can liquidate further distressed assets, and build for a meaningful & enduring recovery (accompanied by good ol' fashioned inflation).
A bit off topic, but what republican can compete with silver-tongued Obama? Main street is pissed at Wallstreet and at DC. Regardless, I don't think Obama will be going into the next election as an underdog. The democrats will get slaughtered in the house though. That will work out well, as far as I'm concerned. A gridlocked government is my favorite kind.