Handwritten Text Recognition for manuscripts and early printed texts
David Hillman 18 september 2012 political update
1. Robin
Hood
Tax
Political
Update
–
18
September
2012
Richard
Carr,
David
Hillman
Summary
• France
is
set
to
allocate
at
least
10%
of
the
revenue
from
its
recently
introduced
unilateral
FTT
on
share
transactions
to
development
and
climate
change,
which
is
an
important
precedent
in
advocacy
to
other
ECP
countries
to
use
FTT
receipts
in
this
manner.
Pressure
on
Hollande
between
now
and
25
September
has
a
realistic
prospect
of
doubling
this
allocation
to
20%.
• Progress
towards
achievement
of
the
FTT
through
the
Enhanced
Cooperation
Procedure
(ECP)
by
a
minimum
of
9
European
countries
by
the
end
of
2012
is
on
track
with
an
intensification
of
German
diplomatic
efforts
to
agree
the
text
of
a
letter
to
be
lodged
with
the
EC
by
the
end
of
September.
More
work
to
ensure
Italy
and
Spain
join
France
and
Germany
is
a
current
priority.
• Germany
is
pressing
to
expand
the
list
of
ECP
countries
to
13
or
more
-
ie
half
or
more
than
half
of
Member
States
participating
in
the
FTT.
• Whilst
inclusion
in
the
letter
to
the
EC
of
wording
to
the
effect
that
a
proportion
of
FTT
revenue
would
be
automatically
pre-allocated
to
development
and
climate
change
does
not
seem
likely
due
to
EU
rules,
there
have
been
positive
indications
from
the
German
government
that
they
would
devote
some
of
the
proceeds
in
this
way.
• New
regulatory
frameworks
to
facilitate
the
taxation
of
derivatives
are
set
to
come
on
stream
in
the
EU
from
2013.
The
two
frameworks
–
EMIR
and
MiFID
2
-
will
greatly
facilitate
taxation
of
derivatives
making
a
broader
scope
FTT
easier
to
implement.
1)
French
unilateral
FTT
–
minimum
of
10%
to
development
and
climate
change,
potentially
20%
On
1
August
2012,
France
launched
its
unilateral
FTT
on
share
transactions.
Initially
announced
as
a
0.1%
tax
by
Sarkozy
in
January,
newly-‐elected
President
Hollande
subsequently
increased
the
rate
to
0.2%.
The
tax
applies
to
all
publicly
traded
businesses
with
a
value
of
over
€1bn
(109
companies).
The
general
expectation
is
that
revenue
will
be
of
the
order
of
1.6
billion
euro
a
year
and
about
500
million
euro
in
2012
(since
the
tax
receipt
began
during
the
year,
commencing
from
1
August).
The
doubling
of
the
tax
to
0.2%
by
Hollande
is
believed
to
have
increased
the
revenue
that
will
be
received
by
€170m
in
2012
and
€500m
in
2013.
As
mentioned
above,
it
has
been
stated
in
the
French
Parliament
that
10%
of
the
FTT
revenue
would
go
to
development
and
climate
change.
Pressure
between
now
and
25
September
to
increase
the
percentage
from
10%
to
20%
is
a
real
possibility.
2)
Progress
towards
achievement
of
the
FTT
through
the
Enhanced
Cooperation
Procedure
(ECP)
Our
intelligence
indicates
that
currently
8
countries
have
agreed
to
participate
in
the
ECP:
France,
Germany
Austria,
Belgium,
Slovakia,
Slovenia,
Portugal
and
Greece.
This
means
we
are
frustratingly
close
to
the
minimum
of
9
countries
required
to
launch
the
ECP.
Intense
diplomatic
efforts
continue
to
persuade
Italy
and
Spain
to
join.
Other
countries
that
might
join
include:
Finland,
Hungary
and
the
Netherlands.
Whilst
the
exact
timeframe
is
not
yet
clear,
our
intel
suggests
that
the
letter
to
the
European
Commission
requesting
the
Enhanced
Cooperation
Procedure
for
the
FTT
will
be
received
by
the
end
of
September.
The
EC
would
then
work
up
their
proposal
by
the
end
of
October,
giving
two
months
for
legislation
to
progress
through
the
necessary
stages:
a
vote
in
the
European
Parliament
(non-‐binding)
and
a
qualified
majority
vote
in
the
European
Council
(binding).
The
parliamentary
vote
is
likely
to
be
a
formality,
but
the
period
of
negotiation
between
member
states
prior
to
a
European
Council
vote
is
likely
to
be
of
importance
–
particularly
in
ensuring
nations
do
not
opt
for
a
watered
down
version
of
the
FTT
(i.e.
simply
a
tax
on
shares).
The
ECP
requires
a
minimum
of
9
countries
to
participate
but
possibly
as
many
as
13-‐14
countries
may
end
up
taking
part.
This
increased
number
of
nations
opens
the
possibility
for
a
more
broad
based
tax
–
in
that
by
reducing
the
ability
of
nations
to
each
enjoy
de-‐facto
veto
rights,
the
German
emphasis
on
a
bold
tax
is
less
likely
to
be
de-‐railed
by
one
or
two
unwilling
countries.
Crucially,
for
Germany,
derivatives
remain
a
red
line
issue
–
they
see
little
point
in
implementing
an
FTT
without
it
being
included.
Of
serious
note
in
respect
of
Germany’s
intent
is
that
they
have
made
provision
in
their
2014
budget
for
revenue
from
the
FTT.
1
2.
Allocation
of
FTT
revenues
At
this
stage,
it
seems
unlikely
the
letter
to
the
EC
will
include
reference
to
development
and
climate
change.
The
German
finance
ministry
contends
that
the
pre-‐allocation
of
revenues
is
not
possible
under
German
law,
and
is
in
contravention
of
EU
rules.
However,
it
does
appear
that
the
German
government
would
be
sympathetic
to
increasing
their
development
budget
through
use
of
FTT
revenues.
Germany
and
other
governments
will
need
to
be
pressed
to
ensure
they
match
positive
words
in
this
regard
with
action,
particularly
through
using
the
precedent
of
the
French
FTT
allocating
a
percentage
of
revenues
to
international
solidarity
purposes,
outlined
below.
France,
who
unilaterally
introduced
an
FTT
on
share
transactions
on
1
August
this
year,
recently
stated
in
their
Parliament
that
10%
of
the
FTT
revenue
would
be
dedicated
to
development
and
climate
change
purposes.
There
may
be
a
possibility
to
get
this
percentage
raised
to
20%,
though
this
may
prove
difficult
in
the
face
of
finance
ministry
opposition.
However,
the
precedent
of
allocating
a
specific
percentage
of
FTT
to
development
and
climate
change
is
to
be
welcomed.
Were
a
9
nation
broad
based
FTT
to
follow
this
example,
it
would
see
about
€4bn1
go
to
such
purposes.
There
is
every
reason
to
push
for
a
higher
percentage.
There
may
still
be
time
to
press
upon
leaders
of
prospective
ECP
countries
the
need
for
allocation
language
in
the
letter,
however
if
Germany
is
not
on
board
the
prospect
of
success
would
appear
low.
3)
General
election
result
in
Netherlands
brings
FTT
closer
In
the
elections
on
12
September
in
the
Netherlands
there
was
an
important
victory
for
pro-‐European
parties
and
a
rejection
of
the
Eurosceptic
forces
in
Dutch
politics
(such
as
Wilder,
whose
far
right
Freedom
Party
fell
to
just
15
seats).
Prime
Minister
Rutte’s
right
wing
VVD
(41
seats)
and
the
social
democratic
Labour
party
(39
seats)
look
likely
to
form
a
coalition
in
the
week
commencing
17
September.
This
would
deliver
a
government
of
80
seats,
4
more
than
the
minimum
for
a
majority.
It
is
possible
that
the
social
liberal
D66
party
may
also
join
any
coalition
formed.
The
most
likely
scenario
is
a
Liberal-‐Labour
coalition.
This
is
a
shift
to
a
more
pro-‐
European
Government
increasing
the
likelihood
that
the
Netherlands
would
join
the
ECP
countries.
4)
Introduction
of
new
regulatory
frameworks,
EMIR
and
MiFID
2,
will
facilitate
taxation
of
derivatives
As
a
response
to
the
financial
crisis,
2
new
regulatory
frameworks
will
be
introduced
in
the
coming
period
that
as
a
by-‐product
will
make
the
taxing
of
derivatives
far
easier.
EMIR
concerns
the
mandatory
reporting
of
all
trades,
whilst
MiFID
2
attempts
to
bring
over
the
counter
derivatives
onto
registered
trading
exchanges.
Although
MiFID
2
will
make
the
logistics
of
taxing
derivatives
easier,
for
our
purposes
EMIR
is
the
more
important
as
its
implementation
next
year
will
greatly
facilitate
the
immediate
taxation
of
derivatives
trades.
EMIR
covers
the
obligation
for
over
the
counter
(OTC)
derivatives
to
be
cleared
and
for
the
mandatory
reporting
of
all
derivatives
contracts
(OTC
and
non-‐OTC
derivatives)
to
trade
repositories,
while
MiFID
2
covers
the
obligation
for
sufficiently
liquid
derivatives
to
be
traded
on
trading
venues
(and
for
those
derivatives
to
be
cleared
through
Central
Counterparties).
EMIR
was
adopted
by
the
European
Parliament
on
29
March
2012.
It
will
need
formally
to
be
adopted
by
the
EU
Council,
although
that
is
expected
to
be
a
formality.
MiFID
2
is
likely
to
be
implemented
later
(possibly
as
late
as
2015),
but
though
it
will
be
helpful
in
simplifying
the
collection
of
tax
revenue,
it
is
not
necessary
for
the
taxation
of
derivatives
to
take
effect.
Conclusion
The
coming
days
and
weeks
are
particularly
important
in
respect
of
influencing
President
Hollande
to
increase
the
percentage
of
FTT
revenue
allocated
to
development
and
climate
change
from
10%
to
20%.
The
coming
months
are
very
important
in
terms
of
both
the
timing
and
content
of
a
multilateral
European
FTT.
It
seems
likely
that
European
leaders
will
stick
to
their
commitment
of
FTT
implementation
by
the
end
of
2012.
From
the
civil
society
perspective,
we
need
to
redouble
our
efforts
during
this
period
to
ensure
that:
a) as
many
countries
as
possible
take
part
in
the
Enhanced
Cooperation
Procedure
for
the
FTT.
b) the
FTT
is
as
broad
based
as
possible,
and
is
not
simply
a
tax
on
share
transactions.
Particularly,
we
need
to
ensure
that
derivatives
are
included
and
that
no
loopholes
are
introduced,
such
as
the
exemption
of
pension
funds.
c) using
the
French
precedent
as
a
starting
point,
we
need
to
secure
from
participating
countries
a
proportion
of
not
less
than
10%
from
the
additional
revenue
raised
from
the
FTT
to
go
towards
1
Based
on
revenue
figures
from
a
recently
launched
report
by
the
German
Institute
of
Economic
Research
(DIW).
2