AGAINST an FTT
1. TAX INCIDENCE
Tim Worstall, one of our commenters, published a report for the Institute of Economic Affairs in which he argues that it won’t be banks and financial institutions that end up paying any Financial Transactions Tax. The burden of the tax could be passed down to consumers of financial services – households, pension funds, etc.
2. FINANCIAL SERVICES WILL MOVE
If we tax financial services, the risk is that they will flee to Hong Kong, Singapore, New York, Zurich or anywhere they don’t have to pay such a tax. The economies of European member-states (and, in particular, that of the United Kingdom) would suffer.
3. IT WILL LOSE MONEY
Even by the EU’s own estimates, the tax could potentially raise less money in revenues than is lost in terms of lowering of economic output. Accounting companies have warned that the net effect of a tax could be a loss of between 2 billion euros and 116 billion euros, due to lower economic activity and falling revenues from other taxes.
FOR an FTT
1. IT’S FAIR
As European Commission President José Manuel Barroso argued in his State of the Union speech, the financial services sector should be made to pay its “fair-share” to help repair the damage that they helped cause.
2. IT WOULD RAISE BILLIONS
Even a modest EU Financial Transactions Tax of around 0.1% on equity and 0.01% on derivatives could yield 55 billion euros annually. At a time when national governments are heavily in debt, this is a very attractive prospect.
3. DECREASE MARKET VOLATILITY
An FTT might discourage short-term trading, thereby helping bring about less volatility in what have been very choppy markets recently.
SEE WHAT THE EU POLITICAL GROUPS THINK
The European People’s Party (EPP)
- FTT: Higher taxation of off-exchange trade
- FTT: EPP Group expects Financial Transaction Tax to become global
- Financial Transaction Tax: EPP Group welcomes Council’s green light
Progressive Alliance of Socialists and Democrats (S&D)
- FTT: “Europe needs to move swiftly on a promise made to Europeans citizens”
- Swoboda: “Financial transaction tax one step closer to reality”
- S&D Euro MPs welcome launch of FTT
Alliance of Liberals and Democrats for Europe (ALDE)
- EU leaders’ budget squabble is like a Turkish bazaar
- Carl Haglund on Common system for taxing financial transactions
- Ramon Tremosa i Balcells on Common system for taxing financial transactions
The Greens–European Free Alliance (Greens–EFA)
- Financial transaction tax: Member states must swiftly adopt sound proposal and agree coherent plans for just use of revenues
- Financial transaction tax: FTT vanguard plans approved; Commission must swiftly follow-up with proposal
- Financial transaction tax: Way cleared for FTT vanguard after EP vote
European Conservatives and Reformists (ECR)
European United Left–Nordic Green Left (GUE-NGL)
Europe of Freedom and Democracy (EFD)
SEE WHAT THE EU POLITICAL GROUPS THINK
The European People’s Party (EPP)
- FTT: Higher taxation of off-exchange trade
- FTT: EPP Group expects Financial Transaction Tax to become global
- Financial Transaction Tax: EPP Group welcomes Council’s green light
Progressive Alliance of Socialists and Democrats (S&D)
- FTT: “Europe needs to move swiftly on a promise made to Europeans citizens”
- Swoboda: “Financial transaction tax one step closer to reality”
- S&D Euro MPs welcome launch of FTT
Alliance of Liberals and Democrats for Europe (ALDE)
- EU leaders’ budget squabble is like a Turkish bazaar
- Carl Haglund on Common system for taxing financial transactions
- Ramon Tremosa i Balcells on Common system for taxing financial transactions
The Greens–European Free Alliance (Greens–EFA)
- Financial transaction tax: Member states must swiftly adopt sound proposal and agree coherent plans for just use of revenues
- Financial transaction tax: FTT vanguard plans approved; Commission must swiftly follow-up with proposal
- Financial transaction tax: Way cleared for FTT vanguard after EP vote
European Conservatives and Reformists (ECR)
European United Left–Nordic Green Left (GUE-NGL)
Europe of Freedom and Democracy (EFD)
World is speedest to made some law for marrying fuckers than to helping the low class society
another tax? can’t wait
I think that they would do better if they forbid the finantial transactions from E.U. to the ofshore instead of this finantial transactions taxation. That would be more efficient to have acess to new economical funds, control the big fortunes and stop with money laundries in the world. This measure will only make the fiscal evasion bigger than it is nowadays, and it will not benefit the entrepreneus in absolutelly nothing nor help the creation of new employents that E.U. needs so much.
The internal of borders of EU would have been an exclusive area for every kind of trade transactions already. The FTT have to implement in the EU also. Actually for all of World should implement the FTT. İt will regulate to the derivative markets and stock markets.
Why not european pax tax on personal income? Corporation profit or wealth ?
we should refuse to pay
they which argue the tax will generate just negative effects have right,but also the arguments of J. M. Barosso cannot be ignored;the big question is which effects will be stronger!
generally,a new tax,specially when we talk about a crisis,is not the best way to keep business in your country
Everything barosso says should be ignored.
Os estados membros da UE devem controlar os grandes grupos empresarias e também as grandes fortunas e parar com as lavandeiras de dinheiro para os paises de paraisos fiscais
The weak Western countries need to restructure the political system
http://economicsandpolicy.blogspot.it/#!/2013/02/the-weak-western-countries-need-to.html
http://eblanademocraticmove.blogspot.ie/2013/02/should-european-citizens-be-happy-about.html
End the EU, it`s the painkiller to half of the problems.
The EU must create or is entitled a new institution like Saving İnsurance İnstitution (TMSF in Turkish) of Turkey, instead of the ESM or EFSF or EFSM. Namely the bureaucracy of EU must confiscate either the debts and the claims.
http://www.youtube.com/watch?feature=player_embedded&v=vwosVWSeHt8
I think that the EU should create a financial transaction tax, because we need to regulate financial markets and take the money for public services in this area