A Transaction Tax will Make Investing, Trading and Pensions More Expensive
Europe is doing its utmost to become less competitive, just at a time when it needs to be doing the exact opposite.
By pushing for a transaction tax, they are in serious danger of making investing, trading
and financial transacting vastly more expensive.
This would have serious ramifications across the financial markets and you can guess who's going to have to pay. That's right, you and I.
The cost of investing will spiral and pensioners will suffer as fund managers construct their investment portfolios, intended to benefit them in retirement, and simply pass on the cost of layer after layer of tax.
Any such tax will be destructive, just as Sweden found out when they introduced one; it wasn't long before they retracted it.
Unfortunately, despite the UK's protestations, it looks like the political will in Europe is really behind this one and it's becoming more likely to be implemented.
Speaking of taxes, in another attempt to appeal to voters, the opposition has thrown their weight behind a possible mansion tax on the rich.
There aren't all that many houses in the UK worth over £2 million, but a lot of them are probably lived in by people in their retirement, who've worked hard all their lives. If that isn't taxing aspiration then I don't know what is.
Many others are likely to have a large mortgage on their property, meaning their actual equity would be far less than £2 million, and for them any mansion tax would be crippling.
It's time that everyone paid less tax, rather than more.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Simon Denham, 15 February 2013