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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGiant Victory in Europe on Taxing Financial Speculation
http://www.pdamerica.org/news/item/1289-giant-victory-in-europe-on-taxing-financial-speculationEuropean 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 didnt 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.
Mnemosyne
(21,363 posts)BadgerKid
(4,552 posts)www.investopedia.com/terms/s/secfee.asp
Mnemosyne
(21,363 posts)bvar22
(39,909 posts)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!
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[font size=1 color=gray]...or maybe I should just move to another country?[/font]
Wounded Bear
(58,656 posts)0.1% on straight up trades
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and 1% on those evil derivatives.
(But I'm actually kind of serious. IMHO derivatives and other creative shit shold pay more.)
bigapple1963
(111 posts)what could happen is instead of trading stocks people will just trade CFD and/or go offshore.
Egalitarian Thug
(12,448 posts)ReRe
(10,597 posts)...and we could balance our books tomorrow and rebuild America. Go Senator Warren!
pampango
(24,692 posts)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
muriel_volestrangler
(101,318 posts)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.