37 Pages Posted: 20 Apr 2016
Date Written: March 1, 2010
Attempts to raise a significant percentage of gross domestic product 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 behavior. 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: Debt Markets, Emerging Markets, Taxation & Subsidies, Banks & Banking Reform, Economic Theory & Research
Suggested Citation: Suggested Citation
Honohan, Patrick and Yoder, Sean K., Financial Transactions Tax: Panacea, Threat, or Damp Squib? (March 1, 2010). World Bank Policy Research Working Paper No. 5230. Available at SSRN: https://ssrn.com/abstract=1565991