EU Mulls Trading Tax to Generate Surplus to Compensate for Government Subsidy to Finance Industry

LONDON (AP) -- Taxing financial trades has been touted as a panacea for all kinds of global ills, a cash source to fight poverty and global warming. But the latest European attempt to introduce a worldwide standard 40 years after it was first conceived is facing stiff opposition from the U.S. and Britain.
Jose Manuel Barroso, the president of the EU's executive arm, on Wednesday threw his weight behind the tax that his office estimated could raise euro57 billion ($77 billion) a year in Europe to help combat a debt crisis that is threatening the euro currency.
"In the last three years, member states have granted aid and provided guarantees of euro4.6 trillion to the financial sector," Barroso said. "It is time for the financial sector to make a contribution back to society."

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