Prime Minister Gordon Brown is pedaling smartly back on his proposal for a financial transactions tax or ‘Tobin Tax’ after his surprise presentation, delivered at a Group of 20 finance meeting in Scotland, was met with a chorus of criticism over the weekend.

It is believed that Brown’s handling of the issue provoked renewed dispute with the Treasury. Chancellor Alistair Darling is said to be frustrated by the prime minister’s promotion of a plan he already knew would be publicly shot down by the US.

The American rejection of the proposal – “A day-by-day financial transactions tax is not something we are prepared to support,” said US Treasury Secretary Tim Geithner (above, with Alistair Darling) – was followed by rejections from Canada, Russia, the International Monetary Fund and the European Central Bank.

Read it all.

He comes out solidly against the dumb transaction tax idea. Well worth the time. Watch it all (about 6 1/3 minutes)–KSH.

The United States and Britain voiced disagreement Saturday over a proposal that would impose a new tax on financial transactions to support future bank rescues.

Prime Minister Gordon Brown of Britain, leading a meeting here of finance ministers from the Group of 20 rich and developing countries, said such a tax on banks should be considered as a way to take the burden off taxpayers during periods of financial crisis. His comments pre-empted the International Monetary Fund, which is set to present a range of options next spring to ensure financial stability.

But the proposal was met with little enthusiasm by the United States Treasury secretary, Timothy F. Geithner, who told Sky News in an interview that he would not support a tax on everyday financial transactions.

What a disappointment Gorden Brown is turning out to be. This is a very bad idea that he has come out behind, and his timing could not be worse. Fortunately, even the Russian finance minister spoke against it. In any event, read it all–KSH.