Financial Sector Levies and Taxes: Critical Choices for China Domestically and in the G20
CHINA AND GLOBAL ECONOMIC GOVERNANCE: IDEAS AND CONCEPTS, Chapter 3, Junji Nakagawa, ed., Forthcoming
23 Pages Posted: 15 Dec 2011 Last revised: 27 Mar 2014
Date Written: November 3, 2011
The Global Financial Crisis (GFC) sparked vigorous debate on the role of financial institutions and capital markets, and the extent to which such institutions and markets should contribute to the broader economy. Much of this debate has centred on what might be the appropriate mechanisms to enable governments to recoup taxpayer monies used to bail out failing institutions and to restimulate their economies in the aftermath of the crisis. Proposals that have been considered at an international level over the last couple of years have included financial institution levies (such as a financial stability contribution), a financial activities tax (FAT) and a financial transaction tax (FTT). This research project will therefore explore what positions China might most usefully adopt with respect to the global push, and provide an initial outline on global capital market trading and explain the general principles and concerns that underpin the need for an FTT.
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