July 11, 2005

EU Taxes return

EU Referendum has a post on the EU's proposals to tax financial transactions, this was one of the options explored by a working paper that I blogged a while ago.

According to the working paper a Tax on financial transactions did not forfill their criteria for Sufficiency or Stability. So by there calculations it will not provide enough money for what they want the EU to do. Wheither this is because it will cause a lot of financial activity to move to elsewhere is not specified.

Another thing that the working paper pointed out was that a Tax on financial transactions has a very low visibility to the general public. The working paper considered this to be a bad thing. But perhaps in the light of the recent referendum defeats this lack of visibility has changed into a good thing.

However one thing is certain, if they get this tax they will be after more, and preferably an EU personal income tax.


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