Bloomberg is reporting a Tobin Tax is gaining momentum.
John Maynard Keynes proposed a tax on financial transactions in the middle of the Great Depression, and another economist, James Tobin, revived the idea in the 1970s as a way to counter currency market speculation. Neither effort gained much acceptance. Now, a growing number of economists and politicians argue that it’s time for a levy on trading stocks, bonds, currencies and derivatives.
U.S. Secretary Geithner says a Tobin Tax, a tax on financial transactions, is something America will not support and slaps down the U.K. Prime Minster for mentioning the "T" word.
A day-by-day financial transaction tax is not something we're prepared to support.
Oh really? There are already various proposals introduced in Congress for some type of transaction tax on speculation in commodities which affect the national economy (oil).
As noted in this previous post, the only real way a financial transaction tax could work is if it is implemented globally. Else, trades will simply move to a country which has no such tax.
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