Germany's Finance Minister Steibrueck seeks global tax on "financial transactions"

Germany’s finance minister has called for a global tax to be imposed on financial transactions in an effort to end what he derided as “binge-drinking” on markets.

In one of the more radical steps mooted by a world leader to reform the financial system, Peer Steinbrück said receipts from the tax would be used to repay the cost to governments of tackling the crisis, including fiscal stimuli and bank rescue operations.


"The cost of the crisis should not be borne alone by small taxpayers," he told the Süddeutsche Zeitung newspaper.

One person close to Mr Steinbrück said under the proposal, a 0.005 per cent tax would be paid on all financial transactions by banks, insurance companies and investment funds.

The call opens up a divide in the German government ahead of the G20 summit and national elections this month. It clashes with the agenda of chancellor Angela Merkel, who will head the German delegation to the Pittsburgh summit on September 24 and 25.

Mr Steinbrück is vicechairman of the Social Democratic Party, coalition partner to the chancellor's Christian Democratic Union and its main political rival.

A spokesman for Ms Merkel told the Financial Times that the chancellor was willing to discuss an international tax on transactions but said it had close to no chance of being agreed. "You cannot float ideas like that two weeks before a summit," he said. "I suspect this is mainly electioneering on the part of Mr Steinbrück


http://www.ft.com/cms/s/0/e0e6b650-9f34-11de-8013-00144feabdc0.html

I think that German politicians have totally lost their mind !:eek:

 

Believe it or not I think the government there have it right, they are a bunch of crazies over there, check out the gaming laws. But imposing proper taxes on Banks and Financial institutions would be a way of making them be far more careful with our money.

These guys have had a free ride for decades and they do stuff that anyone else would earnestly get arrested for.

 

What makes you give them your money?

 

A masterful proposal. Just make sure there will be enough loopholes in this tax so that Deutsche and Goldman will get an exception, and the rest can go fuck their customers.

Is the govt a financial intermediary now to act as money transfer from consumers/citizens to banks/fis?

 

You don't think the banks etc. aren't just going to pass that tax on to the regular joes?

 

Kinda stepping on my toe there, maitee...