Trader333
Moderator
- Messages
- 8,765
- Likes
- 1,030
Another example of governmental misunderstanding of the impact of transaction tax on trading:
UK Calls for Global Tax on Forex
Paul
UK Calls for Global Tax on Forex
Paul
Last edited:
My comments re on PDF file attached....I have been away and hence the delay...!
I can't post as there is some problems...Site keeps asking for one more digit and then does not allow me to post....Anyway PDF it iwll have to be
Why not a Tax..?....A largest and biggest in financial turnover terms....1% may not be too bad...?...After all a toilet cleaner on a minimum wage is asked to pay Tax...?
Trader333
Moderator
- Messages
- 8,765
- Likes
- 1,030
It would completely kill a huge amount of foreign investment within the UK and make the uk even less competitive in Europe than it now is. Can you imagine every time you wanted to pay your foreign employees having to pay tax, every time you wanted to buy something in another currency, having to pay tax etc etc
It is well known that tax kills business and the more tax you have the more business it kills.
Paul
.....I presume the discussion is about so called Tobin Tax which was coined after economist Tobin....It has nothing to do with Tax on people....
From Wiki.......
A Tobin tax is the suggested tax on all trade of currency across borders. Named after the economist James Tobin, the tax is intended to put a penalty on short-term speculation in currencies. The original tax rate he proposed was 1%, which was subsequently lowered to between 0.1% and 0.25%.
In an interview given to Der Spiegel on 2001, James Tobin distanced himself from the global justice movement and continued to state the validity of his proposal,
"I have absolutely nothing in common with those anti-globalisation rebels. Of course I am pleased; but the loudest applause is coming from the wrong side. Look, I am an economist and, like most economists, I support free trade. Furthermore, I am in favour of the International Monetary Fund, the World Bank, the World Trade Organisation. They've hijacked my name ... The tax on foreign exchange transactions was devised to cushion exchange rate fluctuations. The idea is very simple: at each exchange of a currency into another a small tax would be levied - let's say, 0.1% of the volume of the transaction. This dissuades speculators as many investors invest their money in foreign exchange on a very short-term basis. If this money is suddenly withdrawn, countries have to drastically increase interest rates for their currency to still be attractive. But high interest is often disastrous for a national economy, as the nineties' crises in Mexico, South East Asia and Russia have proven. My tax would return some margin of manoeuvre to issuing banks in small countries and would be a measure of opposition to the dictate of the financial markets."
From Wiki.......
A Tobin tax is the suggested tax on all trade of currency across borders. Named after the economist James Tobin, the tax is intended to put a penalty on short-term speculation in currencies. The original tax rate he proposed was 1%, which was subsequently lowered to between 0.1% and 0.25%.
In an interview given to Der Spiegel on 2001, James Tobin distanced himself from the global justice movement and continued to state the validity of his proposal,
"I have absolutely nothing in common with those anti-globalisation rebels. Of course I am pleased; but the loudest applause is coming from the wrong side. Look, I am an economist and, like most economists, I support free trade. Furthermore, I am in favour of the International Monetary Fund, the World Bank, the World Trade Organisation. They've hijacked my name ... The tax on foreign exchange transactions was devised to cushion exchange rate fluctuations. The idea is very simple: at each exchange of a currency into another a small tax would be levied - let's say, 0.1% of the volume of the transaction. This dissuades speculators as many investors invest their money in foreign exchange on a very short-term basis. If this money is suddenly withdrawn, countries have to drastically increase interest rates for their currency to still be attractive. But high interest is often disastrous for a national economy, as the nineties' crises in Mexico, South East Asia and Russia have proven. My tax would return some margin of manoeuvre to issuing banks in small countries and would be a measure of opposition to the dictate of the financial markets."
