How wonderfull this FTT is

This financial transactions tax:

German companies have joined opposition to the introduction of a tax on financial transactions in Europe, warning of severe damage to businesses in the eurozone’s largest economy.

Blue-chip companies, including Bayer and Siemens, said they faced tens of millions of euros in costs from the tax and complained of burdens such as lower returns on the pension schemes they run for employees.

How much?

A study of 24 large German companies estimated they faced costs of between €600m and €1.5bn from the tax, the DAI said. “Politicians obviously don’t realise what damage the FTT would cause for companies in the real economy,” Ms Bortenlänger said.

Now the tax is said to be about to raise €34 billion or so, isn\’t it? And of course that was all going to be paid by the banks and the banksters. No real industry would be affected: only that bubble stuff of an overmighty financial establishment.

And yet here we\’ve a study of just 24 companies in only one of the 11 economies intrioducing the tax and their costs might be €1.5 billion.

So, yes, only the banks and the banksters will get caught eh? The real economy won\’t be harmed at all. Right.

4 thoughts on “How wonderfull this FTT is”

  1. I have asked before but didn’t get any answers, so I may as well try again. I read somewhere that there already is an FTT of sorts in Italy. However, Italian gov’t debt is excluded from it as it would cause the cost of said gov’t borrowing to increase dramatically.
    If true – is it? – it would really be the last word necessary on this wouldn’t it.

    Tim adds: Dunno about Italy but could well be. We have an FTT in the UK: stamp duty. But it doesn’t apply to gilts for this very reason.

  2. This and the one above about banning cheap imports of solar panels from China remind me of one of my grandmother-s favourite sayings:

    They-re cutting off you nose to spite their faces.

  3. It always seemed obvious to me that this tax would be paid by the users, not the banks. It is a business cost, every bank would have to pay it, so it would be reflected to the customers, the bayer and siemens of this world for one, and the governements for being able to issue thir debt (ie taxpayers).

    It is like saying the tax on airline tickets would be paid for by airlines.

    Utterly stupid.

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