http://www.guardian.co.uk/business/2009/aug/27/turner-tobin-tax-economic-policy Does anybody else see this as silly? Not just the bureaucratic nightmare of submitting every Forex transaction to a single tax body, but also in the ultimate goal which appears to be to decrease the volatility in forex markets? Or am I missing something here? How is this supposed to decrease the risk of financial instability? <>
It seems that by creating this tax they are looking to penalize short term speculators (“short horizon round trips”) - I don’t think anything like this would ever come to fruition, even if there was a tax in place I don’t think I would deter a global macro trader from putting on a trade based on a skewed risk/reward profile. The implications to multi-nationals would be huge to - I do short term trades all the time, yet I am not a speculator, I am helping to run a business. Is fair then to tax me? I don’t think this would ever become a reality.