

France introduces 0.20% financial transaction tax - flavio87
http://news.sky.com/story/967285/france-introduces-financial-transaction-tax

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patio11
The markets interpret taxes as damage and will route capital flows around
them. For example, if it is impossible to sell French securities more liquidly
than a government imposed floor, sucks to own them, but with a team of
engineers and billions on the line you can trivially create some instrument
which proxies actually owning French stock, then trade that. For example,
American Depository Receipts will move in virtual lockstep with the underlying
stock but since they don't move he shares when they change hands they'd avoid
the tax.

This involves more profit for middlemen than the more straightforward way.
London and Wall Street thank you for your support.

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digitalengineer
Just who the h*ll do those politicians think will pay those taxes? Certainly
not the banks. They'll just push the costs to their costumers, they have no
choice anyway as all the banks will have to pay the taxes. France? The next
domino to fall...

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publicroman
I was more or less convinced by Paul Willmott´s arguments on this one.

