Study backs financial transaction tax:
http://www.irishexaminer.com/opinio...y-backs-financial-transaction-tax-182883.html
Irelandâs case for refusing to support a financial transactions tax unless it was global has been undermined by a study from two eminent economists presented to the European Parliament.
The study, commissioned by the Socialist group in the parliament, points out that Hong Kong, Seoul, Mumbai, Johannesburg and Taipei, among the most rapidly growing financial centres in the world, have had a financial transaction tax for some time and raise more than â¬17.5 billion a year from it.
"The financial transaction tax would contribute to fiscal consolidation, a highly desirable aim, especially for those European countries with large public debts and fiscal deficits⦠lower the cost of their new borrowing which would positively impact on their growth and in some cases could contribute to diminish the severity of their sovereign debt crisis.
They also point out that long-term investors like pension funds and insurance companies would pay least and short-term speculators like hedge funds or high frequency traders would pay most. Pension funds hold stock for two years on average which would cost them 0.1% while a high frequency trader, holding stock for seconds, will turn over its portfolio in a day, costing them 50% a year in the tax.
http://www.irishexaminer.com/opinio...y-backs-financial-transaction-tax-182883.html
Irelandâs case for refusing to support a financial transactions tax unless it was global has been undermined by a study from two eminent economists presented to the European Parliament.
The study, commissioned by the Socialist group in the parliament, points out that Hong Kong, Seoul, Mumbai, Johannesburg and Taipei, among the most rapidly growing financial centres in the world, have had a financial transaction tax for some time and raise more than â¬17.5 billion a year from it.
"The financial transaction tax would contribute to fiscal consolidation, a highly desirable aim, especially for those European countries with large public debts and fiscal deficits⦠lower the cost of their new borrowing which would positively impact on their growth and in some cases could contribute to diminish the severity of their sovereign debt crisis.
They also point out that long-term investors like pension funds and insurance companies would pay least and short-term speculators like hedge funds or high frequency traders would pay most. Pension funds hold stock for two years on average which would cost them 0.1% while a high frequency trader, holding stock for seconds, will turn over its portfolio in a day, costing them 50% a year in the tax.
