The reality that banks are out of control and that you can't run a common market without some degree of commonality in tax has finally dawned on the EU.
Merkel and Sarkozy moved towards a financial transaction tax on EU banks yesterday, which is a welcome and overdue move that needs replication way beyond the Eurozone if the feral banking economy is to be brought under control.
And there are also clear signs that corporation tax harmonisation is on the agenda - which makes a complete mockery of moves in the UK by Northern Ireland and Scotland to move against that necessary pre-requsitie for a level playing field for business.
Both moves are in the right direction. Of course the devil will be in the detail. But these are obviously correct initiatives at this time.
As much as the move being made towards balanced budgets, to which i will turn next on this blog, is the wrong one.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
They have no democratic mandate for any of this. They are grabbing power and effectively disenfranchising the PEOPLE of the NATIONS that make up the EU.
They have no mandate or legitimacy to levy a financial tax on British banks. Only the UK Government should decide tax policy in the UK because that Government is accountable to the British people.
The UK should get out now. We should be no part of the EU Dictatorship.
As someone who lives in the lands once occupied by the Iceni I think you take Boudicca’s name in vain
[…] expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]
I hope that some sanity has prevailed in the EU and that a transaction tax will be introduced, but frankly, I think it’s more likely that the Pope will lead an Orange Day Parade than this actually happening.
Of course, I’d be more than delighted to be proved wrong 🙂
You mean you want to see him on the Apprentice Boy’s march next year?
Cats and pigeons come to mind!
“You mean you want to see him on the Apprentice Boy’s march next year?
Cats and pigeons come to mind!”
Or maybe Ian Paisley could attend a Catholic mass!
Well……it could happen! 😉
Fantastic news. Am I right in thinking this is the first heavyweight political support the Robin Hood Tax has received?
Richard,
Thank you so much for everything. Your work is an inspiration. It warms my heart to know that there are people out there with a sense of justice in regard to financial markets; especially at a time when the general consensus is to appease a feral and fetid banking system by cutting vital public services – which many of our most vulnerable people depend on. Your determination to weed out corruption and to suggest workable solutions to pressing problems should be heard at all times. If only you were invited onto television to discuss these issues more frequently – though I doubt the ‘markets’ would like that. Our simpering liberal media loves to appease this artificial construct and pays little to no heed to the real suffering of average people.
In any event, my thanks goes to you!
Jonah.
Thanks
Dear Richard,
I have recently started trading independently on the fx market and make a reasonable but extravegent income. I actually support higher taxes on the markets such as a robin hood or tobin tax in principle but fear it may my job so to speak impossoble. My question is what sort of percent you would expect to be implemented, and what affect this would have volume and liquidity?
Regards
Maxwell
I meant to say not extravagent!
0.05% is proposed
I would have it higher
I want to squash liquidity which is now understood to very clearly be harmful, not beneficial
Thanks for the reply.
So why is liquidity harmfull? Forgive me but I was under the impression it was beneficial.
And if a tax was implemented at a rate that indeed destroys liquidity, would the revenue be significantly diminished by lack of trading volume?
Would this not also end up putting all the power into the hands of the few large institutions that already have too much market control?
It is difficult to find objective information on the web.
Thanks once again.
Neoliberalism says liquidity is beneficial
But have you noticed any benefit from the recent volume of trading
It is decidedly harmful
Speculation always is
So do you have some direct evidence for this?
thanks again
Look at the current financial system
Do you honestly think liquidity is helping right now?
Or is it exacerbating the risk of insolvency – which is the real problem?
I agree there is an issue at the moment and that liquidity is a major contibuting factor. But is the real problem not the underlying issues of stagnating growth and sovereign debt? Surley speculation only reacts to these problems, which in turn may deepen them? Even with a tobin tax would these large sell-offs not occur anyway, given the scale of potential movements and profits? What is your view on the statement that there is only indirect evidence for a financial transaction tax reducing liquidity and volatility, whereas direct evidence exists for the contrary? Is it true that an FTT would only be affective if applied universally across the globe, and implementing such a thing in the EU alone would prove in effective?
One idea I found interesting would be a very small tax at normal times to raise some revenue but not affect market liquidity, which is then ramped to very high levels during times when currencies are under attack. What is your view on this?
I could explain all that
But I also have to write my book
Which will also explain all that
Might you wait for it?
Indeed..until then I remain in favour of a CTT set to 0.005%-0.001% in order to generate substantial revenue without altering market behaviour. Cheers
[…] expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]
[…] expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]
[…] expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]
[…] showed that the German economy barely grew in the second quarter of 2011.Tax expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]
[…] expert Richard Murphy welcomed the commitment to a transaction tax, calling it “a welcome and overdue move that needs replication way beyond the eurozone if the […]