Our privacy policy describes how Fidessa uses cookies on our website. If you continue using our website, you are consenting to our use of cookies. OK

Dumb and dumberer?

Not surprisingly, the recent political elections in Germany have brought the question of financial transaction tax (FTT) back to the fore. Basically, the Social Democrats (SPD) are making it a condition of participation in a European banking union. The reason for this, they claim, is that: “For the SPD, it’s important that taxpayers in the future are no longer liable for banks.” Have to admit I have a fairly high tolerance level these days for politicians weighing in with their ill-judged comments on the financial industry, but this wins my award for one of the worst yet. Please can someone point out to the SPD that the people who pay these taxes are not the banks or broker dealers that act as middlemen, but you and I who invest our hard-earned cash in pensions, insurance and other savings schemes. Just like any other sales tax it is the end user that pays, not the middleman.

Add to this the extra cost that we will all bear in calculating, collecting and validating different levels of FTT across each European country and you start to see a big mess. When you also add in the fact that these markets may be accessed by investment firms from outside the EU (possibly, though, with EU residents as investors in their funds), the whole thing looks pretty asinine.

By way of example, let’s assume that governments around the world decided that car manufacturers were systemically important and that “the taxpayer should no longer be liable for them”. So the solution – let’s put up the sales tax on all new cars – really?

Leave a comment

Copyright © 2019 Fidessa Group Holdings Limited. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Fragulator® is a registered trademark of Fidessa Group Holdings Limited.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.