Editing Tobin tax (section)

===EU financial transaction tax===
{{Main|European Union financial transaction tax}}

[[File:EU financial transaction tax.svg|thumb|220px|<div class="boilerplate" style="margin: 0.25em; padding: 0.25em; text-align: left;">{{center|'''EU Financial transaction tax'''}}{{legend|#008000|Supporting EU countries}} {{legend|#d40000|Opposing EU countries}} {{legend|#464646|Undecided Euro countries}} {{legend|#787878|Undecided non-Euro countries}}</div>|right]]

The EU financial transaction tax (EU FTT) is a proposal made by the [[European Commission]] in September 2011 to introduce a financial transaction tax within the 27 member states of the [[European Union]] by 2014. The tax would only impact [[financial transaction]]s between [[financial institution]]s charging 0.1% against the exchange of [[Share (finance)|shares]] and [[Bond (finance)|bonds]] and 0.01% across [[derivative contract]]s. According to the European Commission it could raise €57 billion every year,<ref name="impact-summary">{{cite news|url=http://www.euinside.eu/en/news/the-eu-expects-57-billion-euros-a-year-by-a-new-bank-tax|title=The EU Expects 57 Billion Euros a Year from a New Financial Tax|author=Ralitsa Kovacheva|date=September 30, 2011|publisher=EU inside|access-date=26 February 2012|archive-url=https://web.archive.org/web/20120303083648/http://www.euinside.eu/en/news/the-eu-expects-57-billion-euros-a-year-by-a-new-bank-tax|archive-date=3 March 2012|url-status=live}}</ref> of which around €10bn (£8.4bn) would go to Great Britain, which hosts Europe's biggest financial center.<ref name="Semeta">{{cite news |url= https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9087264/Financial-transaction-tax-would-raise-10bn.html |title= Financial transaction tax would raise €10bn |author= Harry Wilson |date= February 16, 2012 |newspaper= Telegraph |access-date= 3 March 2012 |archive-url= https://web.archive.org/web/20120220033718/http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9087264/Financial-transaction-tax-would-raise-10bn.html |archive-date= 20 February 2012 |url-status= live }}</ref> It is unclear whether a financial transaction tax is compatible with European law.<ref>Dietlein, Georg (2012): National Approaches towards a Financial Transaction Tax and Their Compatibility with European Law, EC Tax Review, Vol. 21 Issue 4, S. 207–211</ref>

If implemented the tax must be paid in the European country where the financial operator is established. This "R plus I" (residence plus issuance) solution means the EU-FTT would cover all transactions that involve a single European firm, no matter if these transactions are carried out in the EU or elsewhere in the world.<ref>[http://library.fes.de/pdf-files/id/ipa/09063.pdf Sieling, Carsten (2012): Financial Transaction Tax. Sensible, Feasible, Overdue. Friedrich-Ebert-Foundation, S. 2] {{Webarchive|url=https://web.archive.org/web/20131101024329/http://library.fes.de/pdf-files/id/ipa/09063.pdf |date=2013-11-01 }} (Retrieved 2012-06-05)</ref> The scheme makes it impossible for say French or German banks to avoid the tax by moving their transactions offshore,<ref>{{cite news |url= http://www.sueddeutsche.de/wirtschaft/diskussion-um-transaktionssteuer-warum-roesler-falsch-liegt-1.1254914-2 |title= Warum Rösler falsch liegt |author= Avinash Persaud |date= 2012-01-10 |publisher= [[Sueddeutsche Zeitung|Sueddeutsche]] |access-date= 2012-01-10 |archive-url= https://web.archive.org/web/20120113070211/http://www.sueddeutsche.de/wirtschaft/diskussion-um-transaktionssteuer-warum-roesler-falsch-liegt-1.1254914-2 |archive-date= 2012-01-13 |url-status= live }}</ref> unless they give up all their European customers.<ref name="SZ-2012-05-12">{{cite news |url=http://www.sueddeutsche.de/wirtschaft/eu-studie-zur-finanztransaktionssteuer-und-sie-funktioniert-doch-1.1353438 |title=Und sie funktioniert doch |author=Alexander Hagelüken |date=May 10, 2012 |access-date=February 12, 2013 |archive-url=https://web.archive.org/web/20120910050812/http://www.sueddeutsche.de/wirtschaft/eu-studie-zur-finanztransaktionssteuer-und-sie-funktioniert-doch-1.1353438 |archive-date=September 10, 2012 |url-status=live }}</ref>

Being faced with stiff resistance from some non-eurozone EU countries, particularly United Kingdom and Sweden, a group of eleven states began pursuing the idea of utilizing [[enhanced co-operation]] to implement the tax in states which wish to participate.<ref>{{cite web|url=http://www.europolitics.info/economy-monetary-affairs/lowering-contributions-possible-even-under-enhanced-cooperation-art342321-30.html |title=Lowering contributions possible even under enhanced cooperation |last=Sebag |first=Gaspard |date=2012-08-31 |access-date=2012-09-20 |publisher=[[Europolitics]] |url-status=dead |archive-url=https://web.archive.org/web/20130512094546/http://www.europolitics.info/economy-monetary-affairs/lowering-contributions-possible-even-under-enhanced-cooperation-art342321-30.html |archive-date=2013-05-12 }}</ref><ref>{{cite news|url=http://economictimes.indiatimes.com/news/international-business/11-eurozone-states-ready-to-launch-financial-transactions-tax-eu-tax-commissioner/articleshow/16738834.cms|title=11 eurozone states ready to launch financial transactions tax: EU tax commissioner|date=2012-10-09|access-date=2012-10-09|newspaper=The Economic Times}}{{dead link|date=July 2021|bot=medic}}{{cbignore|bot=medic}}</ref> Opinion polls indicate that 41 percent of the British people are in favour of some forms of FTT (see section: [[Financial transaction tax#Public opinion|Public opinion]]).

The proposal supported by the eleven [[EU member states]], was approved in the [[European Parliament]] in December 2012,<ref name="ECPARL">{{cite web|url=http://www.europarl.europa.eu/news/en/pressroom/content/20121207IPR04408/html/Eleven-EU-countries-get-Parliament%27s-all-clear-for-a-financial-transaction-tax|title=Eleven EU countries get Parliament's all clear for a financial transaction tax|date=2012-12-12|access-date=2012-12-27|publisher=[[European Parliament]]|archive-url=https://web.archive.org/web/20121226195512/http://www.europarl.europa.eu/news/en/pressroom/content/20121207IPR04408/html/Eleven-EU-countries-get-Parliament%27s-all-clear-for-a-financial-transaction-tax|archive-date=2012-12-26|url-status=live}}</ref>  and by the [[Council of the European Union]] in January 2013.<ref name="ECENHANCED">{{cite web|url=http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/134949.pdf|title=Financial transaction tax: Council agrees to enhanced cooperation|publisher=[[Council of the European Union]]|date=2013-01-22|access-date=2013-01-25|archive-url=https://web.archive.org/web/20130424203553/http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/134949.pdf|archive-date=2013-04-24|url-status=live}}</ref><ref name="guardia-2013-01-22">{{cite news|url=https://www.theguardian.com/business/2013/jan/22/eu-approves-financial-transaction-tax-eurozone|title=EU approves financial transaction tax for 11 eurozone countries|author=Phillip Inman|date=2013-01-22|access-date=2013-01-25|newspaper=The Guardian|archive-url=https://web.archive.org/web/20130928205051/http://www.theguardian.com/business/2013/jan/22/eu-approves-financial-transaction-tax-eurozone|archive-date=2013-09-28|url-status=live}}</ref><ref>[http://robinhoodtax.org/latest/robin-hood-gets-go-ahead-europe "Robin Hood Gets Go Ahead in Europe"] {{webarchive|url=https://web.archive.org/web/20130127163524/http://robinhoodtax.org/latest/robin-hood-gets-go-ahead-europe |date=2013-01-27 }} ''RobinHoodTax.org'', 23 January 2013</ref><ref>[https://edition.cnn.com/2013/01/25/business/michel-barnier-quest-davos "Barnier: Europe's 'Robin Hood' tax 'politically and morally right'"]  ''CNN'', January 25, 2013</ref> The formal agreement on the details of the EU FTT still need to be decided upon and approved by the European Parliament.<ref>{{cite web|url=https://www.bloomberg.com/news/2013-02-01/eu-to-present-financial-transaction-tax-proposal-on-feb-14.html|title=EU to Present Financial-Transaction Tax Proposal on Feb. 14|last=Brunsden|first=Jim|date=2013-02-01|access-date=2013-02-03|publisher=[[Bloomberg L.P.|Bloomberg]]|archive-url=https://web.archive.org/web/20130925162129/http://www.bloomberg.com/news/2013-02-01/eu-to-present-financial-transaction-tax-proposal-on-feb-14.html|archive-date=2013-09-25|url-status=live}}</ref><ref name="ECPROG">{{cite web|url=http://www.europarl.europa.eu/news/en/headlines/content/20121207STO04364/html/Financial-transaction-tax-clearing-the-next-hurdle|title=Financial transaction tax: clearing the next hurdle|date=2012-12-11|access-date=2012-12-27|publisher=[[European Parliament]]|archive-url=https://web.archive.org/web/20130511222052/http://www.europarl.europa.eu/news/en/headlines/content/20121207STO04364/html/Financial-transaction-tax-clearing-the-next-hurdle|archive-date=2013-05-11|url-status=live}}</ref>