Why is the UK
government, namely Chancellor George Osborne, greatly furious about the EU’s FinancialTransaction Tax proposal? It will impose taxes on shares and derivatives, which
Osborne said was unspecified in the proposal. Osborne was furious that they had
been given only five minutes to review the proposal. He said it had the
potential to drive away investors from the United Kingdom.
All this is
happening at a highly-inconvenient time; the UK’s economy is recovering as
property values continue to boom and the economy, not just the services, but manufacturing
and infrastructure, is slowly improving. This means the foundations of the UK
economy rests on new investors. But the FTT, with its added ‘surprise’ expenses
due to tax, may put off investors planning to start or do business with the United
Kingdom.
You do know
that when the FTT hits shares, companies will need to cost-cut. The first thing
that gets hit is everyone’s pensions. Rather than pay you less, employers will
instead cut off their contributions to your pensions because of the reduction
of investors, or reduced share-buying by investors, which contributes greatly
to operations of any business.
Your pensions
are also “riding” on some stocks, funds and other financial instruments from
the companies that grow them. Financial instruments the Financial Transaction
Tax will directly affect, and this will definitely affect your pensions.
