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November 3, 2011

AP: Sarkozy, Obama Push For Fnancial Crisis Solution

Topics: International News, Political News and commentaries

Our 'Wealth Re-distributor'-in-Chief has taken his job-killing, anti-business, anti-capitalist, pro-socialist, agenda to Europe ... where he finds common ground with fellow socialists:

(AP) -- French President Nicolas Sarkozy says he and the U.S. president agree that businesses should contribute to resolving the global financial crisis.

Sarkozy said after meeting with Barack Obama in Cannes that the pair "found a common analysis to make the financial world contribute" to finding a solution. He did not elaborate, but said he welcomed Obama's "understanding on subjects such as a tax on financial activities."

Sarkozy and some others in Europe have been pushing for a small tax on all financial transactions that could be used to help poor nations and reduce debts. The Obama administration and several leading economists are cool to the idea, favoring instead fees on the biggest banks.

In a nutshell, a man that has created zippo jobs and proven himself to be an expert at killing job growth and economic recovery ... is in Europe sharing his "expertise" with fellow socialists of equal accomplishment.

Hmmm... blind leads blind, dumber meets with dumb; we all know where this is headed. Taxing financial transactions and imposing more taxes on bank profits is really going to help consumers and the economy, right?

A commenter at a Reuters piece titled Democrats revive financial transaction tax idea (yes, the Dems have the same idea as the European socialists ... shocker, right?), offers this perspective on the FTT:

The FTT has destroyed jobs and been a net loss to the national treasury everywhere it's been tried. Sweden's FTT was repealed because it collected only 3% of the projected revenues and resulted in severe job losses after over 50% of their investment/trading industry left the country to avoid the tax. Today Sweden is one of the FTT's strongest opponents. The "Impact Assessment Report" for the proposed European Union FTT showed that it would reduce EU GDP by 0.5%, cost over 500,000 lost jobs, and reduce net tax revenues by 1.8% (i.e., the taxes collected from the FTT would be less than the income and capital gains taxes lost from the contraction of GDP and resulting job losses).

Introducing the FTT into our economic system would cause thousands of American finance industry jobs to be "offshored" to Switzerland, Hong Kong, Canada, Australia, Singapore, Russia and other countries that have firmly rejected the FTT as destructive economic policy. Schwabish (2005) estimated in his study that the introduction of an FTT in the US "would cause the loss of 150,000-210,000 private-sector jobs in New York alone."

Supporters of the FTT often tout the success of the UK "stamp tax," but fail to disclose that most banks and investment firms do not pay the tax. Over 70% of all London Exchange transactions pay no stamp tax, and 100% of all other transactions (e.g., trades on the CME or NYSE) are also exempt. Of all the transactions that originate in the UK, fewer than 3% are subject to the stamp tax. So few transactions are affected as to make it irrelevant. The UK stands firmly against the EU FTT because they know it would decimate London's economy as investment firms relocate to Switzerland, Hong Kong and other non-FTT jurisdictions.

Oh well, at least the #Occupy folks will love it ... more booty from the 'system' for the government to redistribute. Consumers and tax payers can just eat cake and pound sand.

Related: Unions & #OccupyWallStreet Reveal Their Hidden Agenda: A Worldwide Financial Tax

Posted by Hyscience at November 3, 2011 6:56 AM

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