An explanation from Mirada Global:
Though their prime minister, David Cameron, the United Kingdom opposed the application for the financial transaction tax. The proposal put forth by the French president Sarkozy, planned that the European Union should use said tax in order to slow down the financial speculator storm.
Cameron this way defends the interests of his country where the world’s largest financial center is active. His defence will end up having repercussions throughout the EU, for the tax to go through there has to be a unanimous vote by the 27 governments of the member nations. The proposal aimed toad a tax of 0.1% to stocks and derivatives, such as, futures or credit default swaps increase the tax to 0.01%
For Cameron, this tax, known as the Tobin Tax, is ether applied in a global level or its effects could even be negative taking financial activity to other Centers. It is not credible because not all English financial instruments can be bought outside of England.
It is quite evident that the financial sectors are protecting their interests and are in no way willing to allow their profit to be diminished. If applied all over the world this tax, known as Tobin Tax, is estimated to be able to collect 50 billion dollars a year. The proposition was invented in the 70’s before its inventor was awarded the Nobel Prize in economics. The idea consists of using the revenue from this tax in order to aid with poverty in a global scale. So the Tobin tax could have two positive effects, on one side dissuade financial speculation and on the other, finance further development.
Also available in Spanish.
Tim Reidy
Someone could then speculate in currencies in these non taxed havens just as easy as if they were sitting in London, New York City or any other place in any country in the world.
I believe a lot of what the financial community does around the world is not productive but I do not know if this is the way to manage the dysfunctional behavior they engage in. Because of a lot of what they do is very productive and it is hard to distinguish good from bad.
Over 3 trillion dollars a day are traded on financial currency markets. At .01% that amounts to $300 million a day. I think some people might move what they do for that money. This does not include stocks, bonds etc. which would add to the total.
London would lose about $28 billion a year due to the tax.
http://www.londonlovesbusiness.com/news/tobin-tax-could-cost-british-firms-18bn-a-year-says-report/1645.article
Almost every damn thing you buy has a sales tax except stocks, bond, currency trades.
Next they will tell you that poor peoples' 401Ks will be impacted..
Taxing transactions in general is a bad idea. There's no benefit to taxing transactions. Tax wealth instead. That means sales tax should only apply to new goods. You tax the creation, not every time you move it around.
Of course, that day no one would trade. However, if the transaction tax were on the trade regardless of amount, how much would that be? How many trades of varying amounts happen each day? Do you think they'd stop trading because the transaction would cost them a penny?
I am sorry, but I do not understand the comment. Are you disputing what will happen if this tax is imposed or are you just trying to say something negative about people who bring up something that might be relevant. It is hard to tell with most of your comments what your intent is.
But it would also be helpful if all markets joined in, to prevent to proverbial "flags of convenience" that many individuals without loyalty to a nation practice, seeking the benefits of citizenship only when it benefits.
We do not need another grand experiiment is world governemnt using socialist economic models that have always failed politically and economically universally.
No thank you we do not need or want a Tobin Tax.
Not every tax is a good tax. Not that Mirada Global would know that. The American Revolution was fougth over the arbitrary imposition of taxes without the imput, approval and constant review of the people the tax is being imposed on. The governing principle in America of "the consent of the goverened", as oppose to the whim and plesures of elistes is the hurdle any tax must meet in America . And even worldwide local self-determination is the statndard of most democracies. Not that Miranda Global would be solidly grounded in these basic goerning principles. Takes must be justified to even be considered.
And most people do not jump at the idea at paying another tax. They have their own private uses for these money.
Unless one beleives that government is all-wise and knowing like a god goernemnt really does not have an automatic limitless claim on private money. In America at least private money investmentis much better spent dollar for dollar compared to say the are estimated half trillion dollar annual cost of waste, fraud and abuse of government programs such as Medicare alone. Most private entities are very careful of where their money goes and used. Governemnt claims on private money is not automaticlly good to most people.
And tax proposals on paper are often non mainstream. For example secular interests seriously propose that churhes should be taxed. Secular interests have no regard for religion so they see taxing churches as a matter of equality. To them the churches are just another business enterprise and therefore should be taxed like any other business. Basically this is use of taxes to punish, harm or destroy financially people and insitutions not liked by opposing political groups.
Got to be careful with imposing taxes . The power to tax is the power to destroy or set political groups against one another. But most people know that most taxes are not good taxes becasue they harm rather than help society.
I don't want to dismantle the system; I want it fairer, and thereby stronger and less susceptible to the sanctioned gambling we have now.