Photo: Flickr rosefirerising
Don’t start worrying about that new financial transaction tax German Chancellor Angela Merkel and French President Nicolas Sarkozy announced last month.There’s still “no consensus” on the tax, according to AP (via DailyFinance)–and there likely won’t be for a very long time.
Merkel and Sarkozy alarmed the financial services industry when Sarkozy proposed the tax last month. Commonly referred to as a “Tobin tax,” such a levy would force banks to contribute more directly to a European bailout.
Further, the timeline for any debate on the tax will reportedly extend far into the future after inconclusive discussions at a meeting of EU financial ministers in Poland this weekend. According to WSJ, the EU will press for the tax at a Group of 20 meeting in November.
Many say such a tax would have little impact if it were not implemented globally, and could force financial firms into offshore havens.
U.S. Treasury Secretary Timothy Geithner came out against the tax this weekend. The United Kingdom has also said it will oppose such a levy.
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