A financial transaction tax is a levy on trades in the financial markets. The case against a financial transaction tax is strong, and the arguments against it are well known. Such a tax would cycle through the economy, harming retirees and those planning for retirement, issuers, investors, pensioners and businesses.
A financial transaction tax is a levy on trades in the financial markets. The case against a financial transaction tax is strong, and the arguments against it are well known. Such a tax would cycle through the economy, harming retirees and those planning for retirement, issuers, investors, pensioners and businesses. Major economies that have adopted similar tax laws have had overwhelmingly negative results, including reduced asset prices, a shift in trading to other venues, market dislocation and decreased liquidity.
Proposals for a financial transaction tax have been separately introduced in Europe and the U.S. If a tax is only imposed regionally, essential businesses will move to other jurisdictions and that region will be put at a competitive disadvantage.
