Financial Transaction Tax Raises Billions While Curbing Speculation
•Download as PPTX, PDF•
0 likes•331 views
For more information about the FTT, check http://eurosocialistes-geneve.org
![The legacy of the crisis: a huge pile of public debt... ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
More Related Content
What's hot
What's hot (16)
Similar to Financial Transaction Tax Raises Billions While Curbing Speculation
Similar to Financial Transaction Tax Raises Billions While Curbing Speculation (20)
Recently uploaded
Recently uploaded (20)
Financial Transaction Tax Raises Billions While Curbing Speculation
- 1. Bruno Jetin, Assistant professor of Economics, Université Paris Nord and ATTAC France bjetin@yahoo.fr A Financial Transaction Tax to come out of the crisis and avoid the next one
- 3. In terms of net borrowing requirements, things are even worse. In 2009, OECD treasuries issued $3500bn in public securities, that is seven times more than in 2007.
- 5. MDG financing needs can be approximated by the official commitment to reach the 0.7% of GNI.
- 6. Current ODA level is 0.3% of OECD GNI. The total OECD resource gap for the years 2012-2017 to reach the 0.7% of GNI would amount to $180bn per year.
- 8. Who will pay for it? According to a « stylised medium term scenario », (2.6% real GDP growth) the OECD expects: A three-year « fiscal consolidation » equivalent to 1% GDP per year between 2012 and 2014 for 15 OECD countries whose budget deficit in 2011 will be in the range of 2-6%. An additional three-year fiscal effort also equivalent to 1% GDP per year between 2015 and 2017 for the 9 countries whose deficit exceeds 6% GDP in 2011. Among them, the USA, Japan, France…
- 10. « Efficiency gains », public sector downsizing, « long overdue reforms » to public pension schemes;
- 11. A broadening of the tax bases, an increasing indirect taxation (VAT and property taxes), cutting on top personal income tax and lowering corporate income taxes.
- 14. A pre-requisite for any insurance scheme is the ability to price risk, which in turn presupposes the ability for the insurer (the regulator) to conduct proper risk assessment of the insured (the banks) and to proceed so at reasonable costs.
- 16. Regarding revenues, an insurance scheme needs by definition to be pre-funded. Insurance fees are kept aside and would not be reallocated to those global public goods which would reduce the North-South divide, the climate change and fiscal sustainability.
- 18. An insurance scheme will not prevent sudden swings.
- 19. The funding of the insurance scheme creates the same drawback as excessive reserve accumulation. The money stays idle while it could be usefully invested.
- 21. But it is very limited in its ambition.
- 22. The tax revenue would be capped to $90bn over 10 years.
- 23. All non-registered financial institutions, including hedge funds, would not be covered.
- 26. The best alternative is the Financial Transaction Tax It would not leave aside the MDG and the climate change mitigation. It would curb speculation and hence prevent another crisis. It would tax all financial transactions, including the most controversial derivatives. It would counterbalance financial authorities’ loss of control over global finance. The FTT provides government with a regulatory tool that would not be conditioned upon supervisory authorities’ ability to price risk.
- 27. The best alternative is the Financial Transaction Tax It would bring global banking back to its original function of financing the real economy. It is a low cost solution. Collecting the tax is very easy on stock exchanges and not too complicated for OTC transactions. Tax can be collected at the dealing site, thanks to message routing or at the settlement site according to the specificities of each country.
- 28. Thanks for your attention.