Update on Transaction Tax

Discussion in 'Wall St. News' started by HotTip, Dec 18, 2009.

  1. HotTip


    This was on the weekly email from Greencompany...

    This tax idea is being embroiled into related stories on a banker bonus tax in the UK, financial reform, TARP, Main Street vs. Wall Street and more. Bills have been presented to pass a financial-transaction tax in the House and Senate (soon) and hopefully they will be defeated (which appears to be the case).

    President Obama chastised the banks to lend more and rein in high year-end bonuses. The UK passed a one-time 50 percent tax on banker bonuses (above the regular 40 percent income tax) and France quickly followed suit. Thankfully, Germany said no and asked its bankers to use self-restraint instead. Banks are rushing to pay back TARP and get out from underneath Washington's control so they can pay bonuses. Thankfully, NYS Gov. Patterson agrees with our Petition's point about letting banks pay reasonable bonuses so NY can collect its vital tax share of bonus wage taxes. The battle over this tax and related issues is reaching a fever pitch. But I still think we will dodge this bullet on a transaction tax until the IMF issues its promised report on global transaction taxes vs. global bank levies, which is scheduled for preliminary release in April and final release in June 2010. In the meantime, the UK is expected to elect a new Tory PM Candidate Cameron, who has indicated he is not in favor of a (beefed up) transaction tax in the UK. Unless all major global financial exchanges pass a coordinated transaction tax, it's doubtful the U.S. will agree to this tax in fear of losing too much financial transaction business to foreign markets. Like universal climate control, it will be hard to accomplish. Read Green's blog to catch up on these important tax issues.