European Financial Tax - they're havin' a larf

michaels

BBC Link

Summary a tax on financial transactions in Europe expected to raise £50bn - 80% of it from the UK but all the revenue raised going to the EU.

Of course even if it did go ahead all the transactions would disappear to outside of the EU and revenue raised would be minimal but I just can't believe they could propose a tax which basically implies the UK transferring £40bn extra to the EU every year - I know we are stupid but surely not that stupid.

lemonjelly

I wouldn't put anything past Cameron or Georgie boy I'm afraid...

I think the "only by global agreement" arguement is a weak one - there's no way that'll happen.

I'd like to get details of where the city of london reckon they'll pay 80% of this tax. In my (limited) experience, the city of london very generally suggests that it pays a phenomenally high amount of tax, yet actually does all it can to pay next to none.

(cynic mode off...)

Really2

Perhaps they need to focus on spending rather than Tax?

It was countries spending money like fools that has caused the euros problems.

When do we say stick it up your Harris?

Really2

lemonjelly wrote: »

I wouldn't put anything past Cameron or Georgie boy I'm afraid...

I think the "only by global agreement" arguement is a weak one - there's no way that'll happen.

I would bet the conservatives to be stronger on this than the last pile of European puppies.
Eg our £1Bn PA loss of EU Rebate.

BlondeHeadOn

I didn't quite understand this, in the BBC article it says that 80% of the revenue would come from the UK, but also in the article it says that

"Under the proposals, the financial tax would be levied at a rate of 0.1% on all transactions between institutions when at least one party is based in the EU. "

Surely that means that any transaction which includes any EU-based company would be taxed, so this would affect all EU companies not just those in the UK? So how do they work out that 80% of the revenue will come from the UK? Either the UK has considerably more companies based here than I thought, or something else is occuring ....

I feel as though I am missing something here - please explain!

Really2

lemonjelly wrote: »

I'd like to get details of where the city of london reckon they'll pay 80% of this tax. In my (limited) experience, the city of london very generally suggests that it pays a phenomenally high amount of tax, yet actually does all it can to pay next to none.

(cynic mode off...)

it is 0.1% of all transactions between banks (I presume that is the basis of instiutions, financial ones). We are the financial capital of Europe.
So it would suggest 80% by value of europes financial transactions happen in the UK.

BlondeHeadOn

Really2 wrote: »

it is 0.1% of all transactions between banks. We are the financial capital of Europe.

Yes, but .... 80% ???

lemonjelly

Really2 wrote: »

Perhaps they need to focus on spending rather than Tax?

It was countries spending money like fools that has caused the euros problems.

When do we say stick it up your Harris?

I don't think it is restricted to spending. Part of the issue appears to be other issues, such as tax rates, and even tax collection. There appears to be a growing trend of arguement that there are some paying in a lot & getting little out, & others paying little in & taking lots out. There are a lot of variations on this theme (people are citing the greeks for tax evasion, early retirements etc, internally we have similar with benefit claimants, or other misaligned sectors). Classic divide & conquer tactics.

I suppose the issue will morph into something a lot bigger than just finance. In order to get support, countries appear to be having significant restrictions and/or sanctions imposed upon them. The worry, is who is controlling some of these restrictions & sanctions?

Really2

BlondeHeadOn wrote: »

Yes, but .... 80% ???

I would not be surprised 80% (by value) of the European financial transactions go though the UK.

BlondeHeadOn

Really2 wrote: »

it is 0.1% of all transactions between banks (I presume that is the basis of instiutions, financial ones). We are the financial capital of Europe.
So it would suggest 80% by value of europes financial transactions happen in the UK.

Oh, okay - that makes more sense.

Does this smack a bit of "stitching up the Uk after they refused to join our euro club" ...?........

lemonjelly

BlondeHeadOn wrote: »

Oh, okay - that makes more sense.

Does this smack a bit of "stitching up the Uk after they refused to join our euro club" ...?........

I think it is a bit more envy that we are able to control our own situation more (simply because we ain't in the euro), combined with them being concerned that they won't be able to sustain the current levels of support they are having to do at the moment, & they might think we'll happily throw money at them too.