{"id":183532,"date":"2013-01-30T19:39:00","date_gmt":"2013-01-31T00:39:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2013\/01\/30\/some-good-news\/"},"modified":"2013-01-30T19:39:00","modified_gmt":"2013-01-31T00:39:00","slug":"some-good-news","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2013\/01\/30\/some-good-news\/","title":{"rendered":"Some Good News"},"content":{"rendered":"<p>It looks like <a href=\"http:\/\/blogs.reuters.com\/felix-salmon\/2013\/01\/30\/europes-robust-financial-transactions-tax\/\">Europe will be implementing a financial transaction song with teeth<\/a>:<\/p>\n<blockquote><p><span style=\"color: blue;\">The details of Europe\u2019s new financial transactions tax won\u2019t be made public for a few weeks, but the FT\u2019s Alex Barker has seen a draft, and it looks impressively robust. The tax is being implemented by 11 countries, including most importantly Germany and France, and it\u2019s going to be levied at two levels: 0.1% on securities trades, and 0.01% on derivatives trades. It\u2019s also going to be very difficult to dodge: any trader whose institutional headquarters is in one of the 11 countries will have to pay the tax, as will all transactions taking place in those countries, and all transactions involving securities issued in those countries.<\/span><br \/><span style=\"color: blue;\"><br \/><\/span><span style=\"color: blue;\">The tax will have two main purposes. The first is to raise substantial tax revenues on the order of $45 billion per year; the second is to discourage financial speculation. I\u2019m hopeful on the former, but less so on the latter.<\/span><br \/><span style=\"color: blue;\"><br \/><\/span><span style=\"color: blue;\">As Robert Peston and Avinash Persaud pointed out back in 2011, financial transactions taxes work pretty well: even the UK, which is implacably opposed to the European tax and which won\u2019t ever join such a scheme, levies a surprisingly large 0.5% tax whenever anybody \u2014 anywhere in the world \u2014 trades a UK stock. And yet, somehow, London remains the first choice for international companies looking for a place to list their shares.<\/span><\/p><\/blockquote>\n<p>I aggee with Felix Salmon&#8217;s closing:<\/p>\n<blockquote><p><span style=\"color: blue;\">So let\u2019s hope that this tax gets introduced; that it works; and that the rest of the world, seeing the costs and the benefits, starts to follow suit and sign on too. The area covered by the initial 11 countries is big enough that the tax will work well at inception, but as more and more countries join the scheme, the tax will become increasingly efficient and effective. Maybe, eventually, it could even incorporate the U.S.<\/span><\/p><\/blockquote>\n<p>Personally, I would like to see the tax on securities should be a bit hither (about 0.3%) derivatives should be <b>much<\/b> higher (at least .1%, and better yet something north of \u00bd%), but I really want to see this camel&#8217;s nose to get under the tent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It looks like Europe will be implementing a financial transaction song with teeth: The details of Europe\u2019s new financial transactions tax won\u2019t be made public for a few weeks, but the FT\u2019s Alex Barker has seen a draft, and it looks impressively robust. The tax is being implemented by 11 countries, including most importantly Germany &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[984,1004,985,983],"tags":[],"class_list":["post-183532","post","type-post","status-publish","format-standard","hentry","category-europe","category-finance","category-regulation","category-taxes"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/183532"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=183532"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/183532\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=183532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=183532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=183532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}