11 Mar 07
Originally posted by SeitseVery difficult to tax it and prevent unregulated markets cashing in.
A Tobin tax on financial speculation.
Do you agree? Disagree?
How to enforce it without slowing down financial activity worldwide?
How to channel the resources to development needs?
If only few countries decree it, how to remain atractive and avoid flee of capitals?
Generally I am in favour of looking to tax things that are destructive/unhealthy. I see the financial markets as very necessary,
One of the reasons Britain is doing very well in the financial services is that the US has got too much red tape since Enron.
13 Mar 07
Originally posted by SeitseI think it's feasible if it's set up on the few major currency markets.
A Tobin tax on financial speculation.
Do you agree? Disagree?
How to enforce it without slowing down financial activity worldwide?
How to channel the resources to development needs?
If only few countries decree it, how to remain atractive and avoid flee of capitals?
I don't think the double dividend arguments are quite correct. The tax must be very very low (0.01%-0.05😵 or else liquidity problems could cause more damage than anything else. Also, for smaller financial markets, it would need to have a more global (or at least a significant regional) scope in order to avoid capital flight.
I do think, however, that it could be an interesting souce for development funds, for example. I just don't think it is beneficial for stabilizing financial markets as some have claimed. Perhaps only in the form of a Spahn tax, but even there, smaller markets cannot avoid capital flight unless there is significant regional coordination.
Summing up, yes, I'm in favour of implementing it as a form of collection of levying funds for development needs (like the MDGs) but I don't think it comes without an efficiency (liquidity) cost.