First read what this is all about: https://www.marketscreener.com/news...ion-Tax-FTT-approved-and-published--32027431/ ONLY Spanish companies with a market capitalisation of more than EUR 1 billion on 1 December of each year. So very limited number of companies are affected.
Believe me, they won't stop there because the government's spending keeps increasing. If not, they would not have introduced FTT in the first place.
We have seen this kind of taxation in Europe already many years ago. Till today it has not spread all over Europe. Some of these taxations were even abolished after a short time because economical detremental. Taxation resulted in LESS income instead of more income for the government. And parts of the markets shifted to other countries. Some of these experiments: In Belgium existed an exchange fee and since 2016 a speculation tax. Since the introduction of the speculation tax, paid stock exchange taxes fell by 55%. The two taxes together fell 29% short of the stock exchange tax only in the last year. So raising taxes or introducing new taxes diminished the total amount of taxes collected. Like predicted (Laffer curb). Anders Borg, Sweden's finance minister, has told that a European financial transaction tax won't work, citing his countries own experiment with the tax. When Sweden began taxing financial transactions in the 1980s, "between 90%-99% of traders in bonds, equities and derivatives moved out of Stockholm to London," Borg said. "The impact was basically that we did not get any tax revenue. It brought in very little tax money while moving most of the businesses outside of Sweden. "We abandoned [the tax] because it was a very, very bad functioning tax." Sweden implemented its tax in 1984. It was a 0.5% tax on a purchase or sale of an equity security. It was doubled in 1986 and subsequently lowered. In 1991 the tax was abolished following disappointing revenues.
"Legislate in haste. Repent at leisure." Sweden was an outlier when it comes to abolishing the tax. It took eight years to revoke the tax, Think India and the UK where the tax still exists,
This is only for spanish stocks, above a certain capitalisation (it used to be 1bln eur in France, forgot how much it is in Spain) Other countries have this in the EU (not that approve). Besides fwiw spanish stocks are very expensive to trade through IB. I haven´t checked news from France for a while, but the FTT experiment there was far less detrimental to the market than in Sweden unfortunately, I suspect the french FTT is still on.
That's why the Fathers of the the US wisely put in the 2nd amendment of the Constitution. the right to bear arms(weapons).