Bumped ~ related articles ...
Obama Endorses Global Taxes on Eve of U.N. Summit ... and ..French G20 Presidency to go for a very tiny Tobin Tax ... and .. July 2010 France and Germany Push for Financial Transaction Tax ... and UN panel sees sources for Billions for climate' also levies on airline flights and international shipping; taxes on foreign-exchange transactions ... and *** September 21st - Currency Transaction Tax ~ Tobin Tax ~ 60 Nations to Lobby U.N. for Currency Transaction Tax ... and ..
The financial transaction tax at the heart of the debate
The combination of a recessionary squeeze in tax revenues and the money that governments have had to spend to rescue the financial sector as well as stimulate the broader economy has increased the prospects of a fiscal crisis with many rich and poor country governments facing budget deficits of an unprecedented magnitude.
Based on calculations of the Austrian WIFO economic research institute, a global financial transaction tax of 0.05% could yield revenue of about 1% of nominal world GDP per year. You can download the WIFO study hereunder.
As German SPD put it, this would cover about half of the annual additional fiscal resources mobilized by G20 countries for anti-crisis measures (approx. 2% p.a.). A rough estimate of the revenue potential for Germany stands at about 10 to 20 billion EUR per year. The debate among finance ministers in London in the run-up to G20 has shown a basic agreement that burdens of the financial crisis ought to be shared in a fair manner. You can download the SPD position paper here.
Autumn 2009: G20 and EU leaders in favour of a financial transaction tax
At the G20 in Pittsburgh, Merkel put forward the idea of a financial transaction tax. G20 tasked IMF to probe "Tobin tax" (Reuters).
G20 leaders tasked the International monetary Fund to investigate ways the financial markets could pay for the effects of the economic crisis, such as a tax on all international financial transactions: “We task the IMF to prepare a report for our next meeting with regard to the range of options countries have adopted or are considering as to how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system.”Leaders’ Statement – The Pittsburgh Summit September 24–25, 2009
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In October 2009, EU leaders asked the commission to examine ways of "innovative financing," including the feasibility of a tax on financial transactions, to help less-developed countries and possibly help reduce national budget deficits.
A call by UK Prime Minister Gordon Brown for a global tax on financial transactions received some support in Brussels on Monday 9 November. French finance minister Christine Lagarde expressed her support of Mr Brown by saying the proposed tax would be a "very good thing."
2010: When it comes to implementation...
The IMF launched an online public consultation on financial sector taxation in December 2010 (click here to download the consultation note), to seek views from the public on the matter of financial sector taxation (click here to access the consultation page).
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The online consultation attracted more than 90 responses from CSOs, academics, the private sector and government officials. A significant number of the submissions included research papers and policy briefs. The report will be presented to the G-20 Finance Ministers at their April meeting in Washington, D.C.
In March 2010, the European parliament passed a resolution caling on the European Commission to consider the financial transaction tax. One month later, on 6th April 2010, the European Commission published a paper on innovative sources of financing, which considered the financial transaction tax, among other possible options. The paper rejects the idea of a financial transactions and has been strongly criticised. To know more about the paper and the reactions to this paper, please click here.
Those in favour of a Financial transaction Tax
•Academics: Stiglitz, Paul Krugman, Danny Rodrik, Geoff Sachs, Paul Volker, Keynes!• Politicians: Sarkozy, Merkel, Brown, Pelosi, Rasmussen, Junkers. Obama supported the FTT during his campaign. Barney Frank want it to be global. Barroso has been favourable, as have the Austrians. • Other key financial figures: Adair Turner, George Soros, Warren Buffet• Media: Le Monde, The Mail, The Guardian, New York Times…• Celebs: None yet but Richard Curtis interested.
Those against a Financial Transaction Tax
On 9 September, the Wall Street Journal mentionned "ECB'S Trichet Opposes Tobin Tax On Fincl Transactions ", which was confirmed in last week, when European Central Bank president Jean-Claude Trichet said:
"I personally am not convinced."- the US treasury. - Significant parts of the UK government. - Finance ministries generally. - The City of London and Wall Street- Fat cats the world over- The Economist and the Financial Times
Those who are not clearly in favour of a Financial Transaction Tax
Position held by president Jose Manuel Barroso: the tax idea has "potential," but that "by its very nature such an initiative would need to be implemented globally." The Europeans for financial Reform are calling on the President of the European Commission, Jose Manuel Barroso to push for the creation of a financial transaction tax. Please give us your support by letting him know you support our calls. Write to Barroso! 29.09.2009 - Wall Street Journal: EU Juncker: No Objection To Tax On Financial Transactions 2011/06/28
EP opinion poll shows public support for tax on financial transactions
Europeans are strongly in favour of the principle of a tax on financial transactions at global level, or failing that at EU level initially.
A Eurobarometer opinion poll carried out for the European Parliament covering views on the economic crisis indicates strong support for a tax on financial transactions. Other results show a majority of respondents feeling the euro has not mitigated the effects of the crisis and urging Member States to act in a more coordinated fashion to tackle the problem.
This Eurobarometer survey on "Europeans and the crisis" is the third such survey undertaken for the European Parliament. The first one was carried out in January-February 2009, six months before the European elections, while the second was conducted in September 2010.
The fieldwork for this survey was carried out by TNS opinion between 13 April and 2 May 2011 on the basis of face-to-face interviews with 26 825 European citizens.
Since the previous survey, public opinion at EU level has moved only marginally, whereas there were major shifts between the first and second surveys (January - August 2010).
Here are some of the main indications of the poll:
Europeans are strongly in favour of the principle of a tax on financial transactions at global level, or failing that at EU level initially.
A majority of Europeans believe that overall the euro has not mitigated the effects of the crisis.
To combat the crisis, a majority of Europeans above all want the Member States to act in a more coordinated way.
In the debate on whether to boost the economy or reduce public spending, we note that the economic situation of the Member States has a direct impact on answers. In seven months, they have sometimes varied by between 10 and 38 points.
Tackling exclusion and poverty is still the first political priority of Europeans, although there have been very significant variations in several Member States between the two surveys.
Food security: helping agriculture in developing countries seems to be the most effective measure to the respondents, followed by combating speculation on food products. In terms of objectives, Europeans strongly support several measures of which ensuring that everyone has access to food products at affordable prices and also that farmers have a fair income.
See the links for complete details of the poll and other opinion research carried out by the Parliament.
