The EU Commission’s Proposal for a Financial Transaction Tax

17 Pages Posted: 22 Mar 2012

See all articles by John Vella

John Vella

Oxford University Centre for Business Taxation; University of Oxford - Faculty of Law

Clemens Fuest

ifo Institute – Leibniz Institute for Economic Research at the University of Munich; Ludwig-Maximilians-University, Munich; Center for Economic Studies (CES)

Tim Schmidt-Eisenlohr

Board of Governors of the Federal Reserve System

Date Written: March 19, 2012

Abstract

In September 2011 the EU Commission put forward a proposal for an EU-wide Financial Transaction Tax. This article assesses the proposal. It starts by looking at the design of the tax before moving on to the objectives it is meant to achieve. Two questions are asked in relation to each objective: (i) is the objective reasonable? (ii) is the FTT the most adequate tool to obtain it? The conclusions reached are that a case can be made for pursuing some objectives but not others, and the FTT is not the most adequate tool to obtain them.

Keywords: Financial Transaction Tax, FTT, FAT, Financial crisis

Suggested Citation

Vella, John and Fuest, Clemens and Schmidt-Eisenlohr, Tim, The EU Commission’s Proposal for a Financial Transaction Tax (March 19, 2012). British Tax Review, No. 6, 2011; Oxford Legal Studies Research Paper No. 14/2012 . Available at SSRN: https://ssrn.com/abstract=2026158

John Vella (Contact Author)

Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/john-vella

University of Oxford - Faculty of Law ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://www.law.ox.ac.uk/profile/john.vella

Clemens Fuest

ifo Institute – Leibniz Institute for Economic Research at the University of Munich

Poschinger Str. 5
Munich, DE 81679
Germany
++89-9224-1430 (Phone)

Ludwig-Maximilians-University, Munich ( email )

Schackstrasse 4 / II
Munich, DE 80539
Germany

Center for Economic Studies (CES) ( email )

Schackstr. 4
Munich, DE 80539
Germany
++89 2180-2748 (Phone)
++89 2180-17845 (Fax)

Tim Schmidt-Eisenlohr

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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