Eleven EU nations get go-ahead on 'Robin Hood' finance tax

[Bosonic]

Source: AFP

BRUSSELS — The European Commission on Tuesday backed plans by 11 EU nations to launch a hotly contested "Robin Hood" financial transactions tax (FTT) that is tipped to raise billions for the public purse.

After moves to launch the tax across the European Union were scuttled during months of raucous debate by Britain and others, the EU executive proposed that countries in favour, including France, Germany, Italy and Spain, go ahead on their own.

"A core group of member states are keen to move ahead with a common FTT ... And I applaud this," said the European Union's taxation commission Algirdas Semeta.

"I firmly believe that an EU FTT has great benefits to offer ... I also believe that now is the right moment to move ahead with it. Because in difficult times, fairness matters."

Read more: http://www.google.com/hostednews/afp/article/ALeqM5iocqnuwHrXvrOSuNYLt-cgPzjqfw?docId=CNG.f57961c5283e9342673162e0c8492940.4c1

[Vidar]

1. Taxing the financial bandits sounds like a great idea.

Last edited Wed Oct 24, 2012, 08:16 AM - Edit history (1)

[FailureToCommunicate]

7. Their ads are great...

in case you haven't already seen them:

Bill Nighy in one, and Sir Ben Kingsley in the second one

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[pampango]

10. Those ads are awesome. Can you imagine how much could be raised with a similar tax in the US.

With the financialization of our economy over the past 3 decades and the sheer size of Wall Street and the banking industry, even a tiny percentage like that of the EU would raise tremendous funds for the safety net and poor everywhere (as is the intention of that in Europe).

[KamaAina]

2. Let's do it here! Like a tax on tobacco, it accomplishes two things:

1) It raises badly needed revenue.

2) I discourages undesired behavior (either smoking, or "churning", that is, turning stocks, bonds, etc., over and over based on short-term fluctuations in price rather than actually investing in them).

[Vincardog]

3. You are correct. We should do it here. Stop the front running sharks.

[pediatricmedic]

4. We already have a tax on tobacco, but the FTT isn't about stuff like that

We could increase it if people wanted, will save a lot of lives if we do.

But the EU FTT tax isn't on commodities like tobacco, it's on financial transactions, think of something like the stock exchange or banking.

[KamaAina]

6. The common thread is that both raise revenue while helping society in other ways as well

tobacco tax discourages smoking, hence keeps society healthier.
FTT discourages, churning, speculation, etc., hence keeps society relatively free of greedy vultures like Rmoney.

[FreakinDJ]

9. You COMPLETELY MISSED the Real Reason for FTT

It discourages "Day Trading". Market Manipulation, and Speculative Trading and encourages things like "Good Old Fashioned Capitalism where folks invest in a company that actually makes some thing and brings it to market

[Spitfire of ATJ]

5. I'll believe it when I see it...

Wall Street doesn't pay a sales tax on their buying and selling because they claim there IS NO "buying and selling". It's all "trades".

We're supposed to believe all these capitalists are using the barter system.

[WRH2]

8. We need that same sales tax on stocks and bonds. Stop selling strategeic manufacturing jobs

Another issue is we need to consider strategic damage of outsourcing our manufacturing base to China. We don't make our auto and truck parts, construction tools, phones, shoes, medicine compounds etc. Germany rates all strategic.
China is a cruel master in commodities, even water. Rare earth metals shipping was recently throttled to manipulate foreign electronic production.
the job loss weakens are economy to near default. Losses are made up with teachers salaries and pensions.

[amandabeech]

11. I couldn't agree with you more.

Welcome to DU!

[muriel_volestrangler]

12. The UK already charges 0.5% on share purchases by private individuals

It's Stamp Duty Reserve Tax. But I assume, since the financial types in London screamed so loudly at the thought of a 0.1% transaction tax, that their trading is not subject to this, for reasons I've never been able to work out. If anyone can find out who is exempt from the tax, or, even better, the reason they're exempt while 'real' shareholders who'd like to buy shares to hold for a length of time have to pay it, I've love to know.