Sr. Barroso speaks out!

He added: \”It is a question of fairness. If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society, also the banking sector should make a contribution to the society.\”

Oh, right. Hadn\’t thought about it like that before.

Umm, farmers pay tax upon their profits, workers on their wages. Banks pay tax upon their profits, bankers upon their wages.

So, the justification for a special extra tax on the banking sector is the same as the justification for that extra, special, tax upon every transaction in food and every pay cheque in the continent then, is it?

You know, those two taxes that don\’t exist?

BTW, as to the actual effects of this tax, assume that they go ahead and introduce it in the eurozone and not in London (Barroso has threatened the first and Osborne insisted on the second). Go short Frankfurt property and long London basically. What will happen to the European derivatives markets will be what happened to international $ bond financing in the 60s. It\’ll all move to London.

As far as The City is concnerned this is a real Br\’er Rabbitt moment. Oh, no, please don\’t introduce this tax only in the eurozone, oh, no, please don\’t!

4 comments on “Sr. Barroso speaks out!

  1. Actually, I think what bothered me most about his comment is this:

    The contribution banks and bankers make to society is to make loans, accept deposits, and act as financial intermediaries. Much as the contribution farmers make to society is to grow food and offer it for sale.

    The taxes we pay to our respective governments are not our contribution to society. I’m not even sure I’d agree that they are A contribution to society.

  2. Is it too late too round up all the social democrats, other lefty and green politicians and put them back into the lunatic asylum where they obvious escaped from. I fear even if we could it is too late and the harm they have done is irreparable.

    We have a 5th horseman of the apocalypse, collectively those above.

  3. Maybe Snr Barroso is quite on the ball, really. People are beginning to realise that the “Greek rescue” and measures to support other countries actually amount to the largest bank bailout in European history, and they are understandably not too happy about it. Perhaps he’s softening them up to accept it by bashing the banks with a minor tax that will raise nothing but (hopefully) make everyone feel better.

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