The Peril’s of the Tobin Tax for the Eurozone
by Bennett Quillen
The eurozone’s biggest economies is suggesting a tax on all equity, bond and derivative transactions, the so called “Tobin tax”. It would ostensibly raise €30bn-€35bn.
This is the latest Brussels plan. Presumably the revenues would feed into the general government revenues. Of course it is moral corruption – at least they could pretend it might make sense if these funds were to go into an insurance fund not to be tampered with by inept governments which is congruent with the banking union proposal and resolution framework. But, of course that would be too difficult for government bureaucrats: let the Brussels bureaucracy march on.
The real beneficiaries will be the non-EU banks doing business in London for UK issued products. #11 Downing must be pleased by this new round of Brussels stupidity; it will simply strengthen Cameron’s argument.