Europe Readies Plan for Tax on Financial Transactions

[Bosonic]

Source: NY Times

BRUSSELS — The European Commission is expected to unveil a detailed plan on Wednesday to create a financial transaction tax, despite the opposition of several member countries and a formal acknowledgement that it could have a significant negative impact on the European Union’s gross domestic product.

The plan, which has the strong support of France and Germany, will be discussed in a speech before the European Parliament in Strasbourg, France, by José Manuel Barroso, the president of the commission, the executive arm of the European Union.

The measure will probably include taxes on the purchase of stocks and bonds; derivatives are likely be taxed at a lower rate. Transactions on the currency markets are not likely to be included.

Critics are expected to highlight a formal study regarding the proposal’s economic effects. ‘‘With a tax rate of 0.1% the model shows a drop in G.D.P. (-1.76 percent) in the long run,’’ according to a draft of the plan.

Read more: http://dealbook.nytimes.com/2011/09/27/europe-readies-plan-for-tax-on-financial-transactions/

[Angry Dragon]

1. derivatives should be taxed at 50-75%

then we would not have to worry about them so much

[valerief]

3. +1000

[bemildred]

2. There ya go, and tax them heavily too.

THAT will "encourage investment" a lot.

[sam11111]

4. a good first step nt

Nt