is the financial transaction tax a good idea?

[lunakilo]

Just wondering what other people think...

At least Hollande and Merkel agree on one thing

 

[Terrywoodenpic]

Financial transaction tax hit people who trade in money the hardest, as they make millions of transactions. Such people serve no useful purpose for trade or to industry. But they do a great deal of harm to the stability of currency.
Such a tax can only help
I would also like to see the USA's proposed banning of financial institutions trading for their own benefit. At best this puts them in competition with their own clients, at worst it results in potential $ multi billion losses as per last week.

 

[lunakilo]

So I guess that was one vote for

I am also having trouble seing the down side of such a tax but a lot of people claim to know something about ecomonics seem to dislike it.
But I have heard no convincing argument against it.

Anyone...

 

[Terrywoodenpic]

So I guess that was one vote for

I am also having trouble seing the down side of such a tax but a lot of people claim to know something about ecomonics seem to dislike it.
But I have heard no convincing argument against it.

Anyone...

The money markets hate the idea of any form of tax, however it will effect all financial services to a lesser degree. At one time the money markets were simply money exchanges who served importers and exporters. They later found that is was more profitable to trade in money even when "Real" transactions were not involved. Even more profitable when used as a gambling tool to trade against currencies.
The second aspect and of greater importance , was the "Money Lender" who would finance international trade on his own terms. Today money is traded or lent as a commodity in itself, and is rarely directly linked to trade.

 

[lunakilo]

A small update: France Introduces Financial Transaction Tax

 

[Cassiopia]

Financial transaction tax hit people who trade in money the hardest, as they make millions of transactions. Such people serve no useful purpose for trade or to industry. But they do a great deal of harm to the stability of currency.
Such a tax can only help
I would also like to see the USA's proposed banning of financial institutions trading for their own benefit. At best this puts them in competition with their own clients, at worst it results in potential $ multi billion losses as per last week.

I agree

A small update: France Introduces Financial Transaction Tax

Good.

 

[Revoltingest]

They're gonna tax something, & taxation is a damper on that something, so the question should become
about which of all the somethings are most appropriate. A financial transaction tax will slow &/or reduce
the flow of capital. But if that avoids increasing taxes on income, then it's plausible. Alas, I bet
they're just going after a hated group, ie, people who make too much money too easily.
Here's a thought....a higher tax rate for actors making over $500K/yr. They don't need that much,
their work looks like too much fun, & they just can't shut their traps about politics. What say y'all?

 

[Cassiopia]

They're gonna tax something, & taxation is a damper on that something, so the question should become
about which of all the somethings are most appropriate. A financial transaction tax will slow &/or reduce
the flow of capital. But if that avoids increasing taxes on income, then it's plausible. Alas, I bet
they're just going after a hated group, ie, people who make too much money too easily.

And a group that brought the whole world to the brink of financial collapse. But hey, if you don't like capitalism...

Here's a thought....a higher tax rate for actors making over $500K/yr. They don't need that much,
their work looks like too much fun, & they just can't shut their traps about politics. What say y'all?

I suspect actors are taxed more heavily than banks and financial institutions anyway.

 

[Revoltingest]

And a group that brought the whole world to the brink of financial collapse. But hey, if you don't like capitalism...

Naw....the crash began in 2001 when the twin towers fell. I saw businesses immediately begin to cut back, stop expansion, lose venture capital funding, & just plain get scared. Commercial rents immediately began falling & vacancy rates skyrocketed. (This went unnoticed in the media, since we're below their radar.) This resulted in unemployment increasing, so it took longer for the unemployed to find work, & when they did, pay was lower. Now, enter gov't regulation, which required banks to lend in formerly red-lined areas, subsidized very low interest loans, guaranteed loans, subsidized homeowners with tax breaks on home interest, & did other things which inflated the housing market, which is key in this crisis. On top of all that, people who needed to move to where jobs were, faced high state transfer taxes when selling, so there was a barrier to worker mobility. Underwater buyers were defaulting, & banks were in trouble, so now the media took notice, & thought this was the beginning.

I suspect actors are taxed more heavily than banks and financial institutions anyway.

Tax'm even more heavily....they can afford it. Ronald Reagan faced 90+% marginal tax rates, & so could Alec Baldwin.

 

[lunakilo]

Naw....the crash began in 2001 when the twin towers fell. I saw businesses immediately begin to cut back, stop expansion, lose venture capital funding, & just plain get scared. Commercial rents immediately began falling & vacancy rates skyrocketed. (This went unnoticed in the media, since we're below their radar.) This resulted in unemployment increasing, so it took longer for the unemployed to find work, & when they did, pay was lower. Now, enter gov't regulation, which required banks to lend in formerly red-lined areas, subsidized very low interest loans, guaranteed loans, subsidized homeowners with tax breaks on home interest, & did other things which inflated the housing market, which is key in this crisis. On top of all that, people who needed to move to where jobs were, faced high state transfer taxes when selling, so there was a barrier to worker mobility. Underwater buyers were defaulting, & banks were in trouble, so now the media took notice, & thought this was the beginning.

Sounds like an argument for taxing people who fly planes into buildings.
Maybe with such a tax in place things would be like in the good old days before 2001

Tax'm even more heavily....they can afford it. Ronald Reagan faced 90+% marginal tax rates, & so could Alec Baldwin.

I am not sure taxing wealthy actors heavily will bring in that much money. There are not enough of them, and usually actors don't collapse the financial system and I don't hate acours so that is a NO from me.

 

[Revoltingest]

Sounds like an argument for taxing people who fly planes into buildings.
Maybe with such a tax in place things would be like in the good old days before 2001

A very heavy tax on their country of origin perhaps?

I am not sure taxing wealthy actors heavily will bring in that much money. There are not enough of them, and usually actors don't collapse the financial system and I don't hate acours so that is a NO from me.

But it would be a fun tax.
And how about a surcharge for being a bonehead?

 

[lunakilo]

But it would be a fun tax.
And how about a surcharge for being a bonehead?

Not as much fun as taxing financial transactions in my opinion, and how much fun would the world be without boneheads?