Financial Transactions Tax: Panacea, Threat or Damp Squib?
34 Pages Posted: 14 Nov 2009 Last revised: 15 Oct 2010
Date Written: August 14, 2009
Attempts to raise a significant percentage of GDP in revenue from a broad-based financial transactions tax are likely to fail both by raising much less revenue than expected and by generating far-reaching changes in economic behaviour. Although the side-effects would include a sizable restructuring of financial sector activity, this would not occur in ways corrective of the particular forms of financial overtrading that were most conspicuous in contributing to the crisis.
Keywords: Transaction Tax, Tobin Tax
JEL Classification: H27, H25, O29
Suggested Citation: Suggested Citation