06th Jul 2011 - How does EU regulation and Tax directly affect you and me?
I can’t help but feel that the burden of regulation and taxes dictated by the EU is bad for the City and therefore bad for each UK taxpayer. In the news today I read that a number of the Banks are gearing up for a headcount cull. Though the reduction is mainly limited to Equities, Fixed Income, Commodities and Currencies due to decreased volumes and margins, the reality is that any more red tape and tax can only add to the downward pressure felt. The proposed Tobin Tax is now getting closer to becoming a reality by being backed openly by José Manuel Barroso, head of the European Commission. Once this happens a 0.5% tax will be levied on every financial transaction actioned within the EU. This affects London the most and is designed to allow the EU to increase its expenditure at a time when every nation state within the EU is delivering cutting austerity packages to its people. Apart from being another drain on the UK and disproportionately punishing the UK, it will encourage the Banks to transact outside the EU, directly losing us income and hence income from tax gains which will mean a longer period of austerity for each of us in this country. We stand to lose the most. Sadly there is little that we can do to stop the gravy-train due to the way that the voting system works and the City of London will end up funding near to 65% of the total increase in the EU budget proposed. Is that fair for each UK tax payer?It certainly doesn’t feel right.
This is world full of different opinions. Please leave yours.
David Archer
