Cos Cobber sends along this delightful link to a story about hedge funders contemplating decamping England for Switzerland or Asia to escape pending regulations and punitive taxes. It is precisely this possibility that has Pelosi et als caling for a new world order where regulations (and taxes) extend globally. I don’t know if Asia will go along with that but Switerzland has been cowed into deconstructing its banking industry, so I ‘m not hopeful.
From the NYT:
Wall Street Tax Must Be International, Pelosi Says
November 20, 2009, 6:01 am
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Any tax imposed on financial transactions would have to take effect internationally to prevent Wall Street jobs and related business from moving overseas, House Speaker Nancy Pelosi said Thursday.
“It would have to be an international rule, not just a U.S. rule,” Ms. Pelosi said at a news conference, Reuters reported. “We couldn’t do it alone, we’d have to do it as an international initiative.”
Her comments seemed to spell longer odds for the Wall Street tax, which would see a tax imposed on stock trades worth more than $100,000 and which some Democrats in the House of Representatives are proposing as a way to pay for job-creating legislation.
The tax, which could raise $150 billion a year, would tap into widespread public outrage at Wall Street in the wake of the financial crisis, but support is lackluster among key legislators, Reuters said.
“This is just something that is on the table, it hasn’t been developed to a high priority. But it has substantial currency in our caucus,” Ms. Pelosi said.