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Forum Post: Enact a global financial transaction tax and close tax havens worldwide.

Posted 6 years ago on April 22, 2012, 1:16 p.m. EST by mha (142)
This content is user submitted and not an official statement

http://www.avaaz.org/en/petition/ Enact_a_global_financial_transaction_tax_and_close_tax_havens_worldwide/?ejHAhcb

link will work after putting it together



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[-] 1 points by hchc (3297) from Tampa, FL 6 years ago

I believe we should also put time constraints on them too, so that whatever registered fund/whatever you are working out of, you cannot put in multiple trades to happen .01 seconds from one another.

The entire system needs to be wiped out and rebuilt.

[-] 1 points by niphtrique (323) from Sneek, FR 6 years ago

Trading taxes are more commonly known as the Tobin Tax. Tobin suggested a currency transaction tax in 1972, shortly after the Bretton Woods system of monetary management ended in 1971. Experiments with the Tobin tax in the past did not have the desired results. Research on the issue produced the following results:

  • no statistically significant causal link was found between an increase in transaction costs and a reduction in volatility;
  • trading volumes dropped and therefore the tax revenues were disappointing. Probably traders moved to other financial centres.

The underlying political assumption is that trade makes the economy more efficient. High trade volumes on financial markets are considered to be good because they create liquidity (in other words: trade is good because it creates the opportunity for more trade), and stable currency rates are considered to be desirable because they facilitate international trade. The assumption is political because it favours the ruling class that uses trade to exploit others.

The European Union is planning to implement a Tobin Tax [+]. This plan will probably fail if the tax is not implemented globally. British Prime Minster Cameron resisted the Tobin Tax plans of the European Union and he added that he would favour the tax if it was imposed globally. As the economy of Great Britain depends heavily on deregulated finance, Cameron probably did bet on this not happening. Only when a nation disconnects itself from international finance, it will be able to implement a Tobin Tax.