SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction tax (FTT). As it turned out, the ministers didn't even have to take a formal vote because it was obvious that there was sufficient support to move ahead.
The next step is for the European Commission to make a proposal for the tax. The proposal will be based on one introduced by the Commission in September 2011 that would apply a 0.1% tax rate on trades of stocks and bonds and a 0.01% rate for derivatives trades. As described in the European Council statement released today, the aim of this proposal is "for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets."
The proposed tax is based on the "residence principle," meaning that a financial transaction would be taxed in each case where a resident of one of the participating EU member states was involved even if the transaction was carried out in a country that is not a participant.
The tax proposal will have to be adopted by unanimous agreement of the participating member states. EU Tax Commissioner Algirdas Semeta says it is possible that the tax could enter into force beginning January 1, 2014.
Although some press reports have said the funds will go towards bailing out European banks, there is no agreement yet on how revenues will be allocated. International campaigners who have been advocating for financial transactions taxes for several years will be redoubling their efforts to demand that revenues to go towards social and environmental purposes.
Common Dreams is powered by optimists who believe in the power of informed and engaged citizens to ignite and enact change to make the world a better place. We're hundreds of thousands strong, but every single supporter makes the difference. Your contribution supports this bold media model—free, independent, and dedicated to reporting the facts every day. Stand with us in the fight for economic equality, social justice, human rights, and a more sustainable future. As a people-powered nonprofit news outlet, we cover the issues the corporate media never will. |
EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction tax (FTT). As it turned out, the ministers didn't even have to take a formal vote because it was obvious that there was sufficient support to move ahead.
The next step is for the European Commission to make a proposal for the tax. The proposal will be based on one introduced by the Commission in September 2011 that would apply a 0.1% tax rate on trades of stocks and bonds and a 0.01% rate for derivatives trades. As described in the European Council statement released today, the aim of this proposal is "for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets."
The proposed tax is based on the "residence principle," meaning that a financial transaction would be taxed in each case where a resident of one of the participating EU member states was involved even if the transaction was carried out in a country that is not a participant.
The tax proposal will have to be adopted by unanimous agreement of the participating member states. EU Tax Commissioner Algirdas Semeta says it is possible that the tax could enter into force beginning January 1, 2014.
Although some press reports have said the funds will go towards bailing out European banks, there is no agreement yet on how revenues will be allocated. International campaigners who have been advocating for financial transactions taxes for several years will be redoubling their efforts to demand that revenues to go towards social and environmental purposes.
EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction tax (FTT). As it turned out, the ministers didn't even have to take a formal vote because it was obvious that there was sufficient support to move ahead.
The next step is for the European Commission to make a proposal for the tax. The proposal will be based on one introduced by the Commission in September 2011 that would apply a 0.1% tax rate on trades of stocks and bonds and a 0.01% rate for derivatives trades. As described in the European Council statement released today, the aim of this proposal is "for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets."
The proposed tax is based on the "residence principle," meaning that a financial transaction would be taxed in each case where a resident of one of the participating EU member states was involved even if the transaction was carried out in a country that is not a participant.
The tax proposal will have to be adopted by unanimous agreement of the participating member states. EU Tax Commissioner Algirdas Semeta says it is possible that the tax could enter into force beginning January 1, 2014.
Although some press reports have said the funds will go towards bailing out European banks, there is no agreement yet on how revenues will be allocated. International campaigners who have been advocating for financial transactions taxes for several years will be redoubling their efforts to demand that revenues to go towards social and environmental purposes.