The transaction tax plan, though scaled back from its original conception, is inching ever closer to a reality.
After a meeting this morning, it seems the transaction tax plan, which failed to gain widespread acceptance at first, has received backing from 11 euro zone countries– though this acceptance could perhaps be seen as begrudging in some cases.
The plan will require some major tweaking before implementation. Originally proposed as a more wide spread levy, the transaction tax plan will most likely only cover share trades initially, with other trades following.
While those involved with proposing the transaction tax had originally hoped to see a .1 percent tax on the value of a share or bond trade, the tax will most likely be closer to .01 percent.
The transaction tax was proposed as a means to get banks to repay some of the money loaned to them during the financial crisis, and while this new tax will not generate anywhere near the 35 billion Euros ($48.13 billion USD) per year the original plan had called for, those pushing for the tax are saying that it is still better than nothing, according to Reuters.
There are still quite a few talks to be had over the subject, and it seems unlikely to see any such transaction tax implemented until 2016.