HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Giant Victory in Europe o...

Wed Jan 23, 2013, 09:41 PM

Giant Victory in Europe on Taxing Financial Speculation

http://www.pdamerica.org/news/item/1289-giant-victory-in-europe-on-taxing-financial-speculation

European ministers didn't even have to take a formal vote because it was obvious that there was sufficient support to move ahead.

EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction tax (FTT). As it turned out, the ministers didn’t even have to take a formal vote because it was obvious that there was sufficient support to move ahead.

The 11 countries are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. It will be possible for other governments to opt in at a later date. And in fact, the Netherlands has expressed interested, but they want to negotiate an exemption for their pension funds.

Next Steps

The next step is for the European Commission to make a proposal for the tax. The proposal will be based on one introduced by the Commission in September 2011 that would apply a 0.1% tax rate on trades of stocks and bonds and a 0.01% rate for derivatives trades. As described in the European Council statement released today, the aim of this proposal is “for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets.”

The proposed tax is based on the “residence principle,” meaning that a financial transaction would be taxed in each case where a resident of one of the participating EU member states was involved even if the transaction was carried out in a country that is not a participant.

10 replies, 725 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 10 replies Author Time Post
Reply Giant Victory in Europe on Taxing Financial Speculation (Original post)
eridani Jan 2013 OP
Mnemosyne Jan 2013 #1
BadgerKid Jan 2013 #4
Mnemosyne Jan 2013 #9
bvar22 Jan 2013 #2
Wounded Bear Jan 2013 #3
bigapple1963 Jan 2013 #5
Egalitarian Thug Jan 2013 #6
ReRe Jan 2013 #7
pampango Jan 2013 #8
muriel_volestrangler Jan 2013 #10

Response to eridani (Original post)

Wed Jan 23, 2013, 10:14 PM

1. If this would only happen here. Thanks eridani! nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Mnemosyne (Reply #1)

Wed Jan 23, 2013, 10:52 PM

4. Yes, but the SEC does have fees.

www.investopedia.com/terms/s/secfee.asp

Reply to this post

Back to top Alert abuse Link here Permalink


Response to BadgerKid (Reply #4)

Sat Jan 26, 2013, 05:12 PM

9. Obviously the fees aren't high enough to stop these crooks. :) nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to eridani (Original post)

Wed Jan 23, 2013, 10:24 PM

2. BANG!!! now THATS what I'm talkin about.

And we will do that here too,
right after we get a Publicly Owned, Government Administered National Health Insurance Plan that covers every American, Cradle to Grave!!!

Lets ROLL, America!!!
WHOOP!

.
.
.
.
.
...or maybe I should just move to another country?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to eridani (Original post)

Wed Jan 23, 2013, 10:36 PM

3. Should be the other way around....

0.1% on straight up trades
.
.
.
.
.
.
and 1% on those evil derivatives.



(But I'm actually kind of serious. IMHO derivatives and other creative shit shold pay more.)

Reply to this post

Back to top Alert abuse Link here Permalink


Response to eridani (Original post)

Wed Jan 23, 2013, 10:53 PM

5. well

 

what could happen is instead of trading stocks people will just trade CFD and/or go offshore.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bigapple1963 (Reply #5)

Wed Jan 23, 2013, 11:21 PM

6. Read the article. No evasion in going off shore. n/t

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to eridani (Original post)

Thu Jan 24, 2013, 12:37 AM

7. A Tax to all transactions on Wall Street...

...and we could balance our books tomorrow and rebuild America. Go Senator Warren!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to eridani (Original post)

Thu Jan 24, 2013, 05:48 AM

8. Good to see that key EU countries like France and Germany, along with smaller countries like Spain,

Greece, Italy and others are participating in this financial transaction tax. Too bad that the UK has not joined to make it a Europe-wide concept. Perhaps a Labour-Lib Dem government in the future might do that. Of course, it would be even better if the US joined in this 'Robin Hood' tax (to make it a global phenomenon) but that seems unlikely at the moment.

EU set for financial transaction tax

A group of 11 European Union countries are set to get the green light to push ahead with the introduction of a financial transaction tax, Irish Finance Minister Michael Noonan said Tuesday. The European Commission, the EU's executive branch, has suggested that trades in bonds and shares be taxed at 0.1 percent and trades in derivatives at 0.01 percent. The money raised could run into billions of euros and help shore up the finances of cash-strapped countries in Europe.

It's still unclear exactly how the funds raised would be used. Some supporters of the tax have suggested they could help fund the EU's budget and create a security net for banks to ensure that taxpayers won't have to pay for bailing out banks anymore.

Germany, France and nine other nations initially hoped the tax would be adopted by the whole EU. However, several countries, including Britain, which is home to the EU's biggest financial hub, refused to endorse the measure amid concerns over the measure's economic impact.

The 11 countries backing the financial transaction tax are Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain. The Netherlands, where a new government came to power last fall, might also join the bid.

http://azdailysun.com/business/eu-grouping-set-for-financial-transaction-tax/article_32d7c053-3f7e-5c88-8a33-e28c37d168f7.html

Reply to this post

Back to top Alert abuse Link here Permalink


Response to pampango (Reply #8)

Sat Jan 26, 2013, 09:53 PM

10. The UK already has a 0.5% stamp duty on share purchases

Stamp Duty on shares and unit trusts is less painful, being charged at 0.5%. However, it can be a significant cost for frequent traders. Many City-based organisations have called for it to be abolished, to allow the London stock market to become more competitive against the major markets in the US and Europe. However, at least the rate at which it is charged is going in the right direction. Prior to 1984, stamp duty on shares was levied at 2%.

Again, the amount payable is rounded up to the next multiple of £5. It is not rounded up however if you buy shares without receiving a physical share certificate, via a nominee account with an online broker for example. Strictly speaking, paperless transactions (which form the vast majority of transactions these days) are governed by a separate tax, called Stamp Duty Reserve Tax.

Your broker will automatically add it to the cost of any share purchase and pay the taxman on your behalf. Note that you don't have to pay Stamp Duty when you buy shares in a market outside the UK and you don't pay it when you buy gilts or corporate bonds either.

http://www.fool.co.uk/Your-Money/guides/Stamp-Duty.aspx


Nothing on derivatives, though.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread