Thursday
Here is a good column slating the idea of a Tobin Tax. The key issue that people need to understand is the issue of tax incidence. To put it another way, taxes are a cost (indeed, for some things, such as taxes on tobacco, policymakers stress this point). Costs get passed on. If we tax financial transactions, it will be passed on in the form of lower profits, job cuts, lower savings rates, higher borrowing costs. The tax, of course, will weigh disproportionately on London, given the far smaller turnover of rival European centres such as Paris.
As the saying goes, can we leave yet?
I saw and heard Juan Manuel Barroso calling for a Tobin Tax yeserday.
The first thought to occur to me was 'Does the EU Commission have tax-raising powers? What about the EU Parliament?'
What's the law on this?
If they don't have the power then I guess that, in the absence of powers to raise tax, they will go down the route of 'persuasion' in EU summits.
Posted by Kevyn Bodman at September 29, 2011 02:18 PM
Kevyn.
Certain monies (for example part [by no means all] of the Sales Tax - which the E.U. insists must be, if it exists upon a good, at least 15%) are earmarked for the E.U.
But the E.U. always wants more money - the "Tobin Tax" would have to be passed by all member states. However, the "great enemy" of the Tobin Tax, the British government, says it is fine with the idea - as long as it is a WORLD TAX (not one just confined to the E.U.).
Pass the sickbag Alice.
As for Tobin himself.
Like Krugman and Stiglitz another "Nobel Prize" winner who does not even know the basic principles of economics.
Posted by Paul Marks at September 29, 2011 02:50 PM
Here's another reason for leaving the EU- the french still haven't played ball, and accepted that the language of Europe is English! Such villainage!
Posted by 'Nuke' Gray at September 30, 2011 02:05 AM
Mr Hague has now declared that Britain can not even have any major powers back from the European Union "for many years".
Well thank you very much.
For cutting off any hope - and not just for getting powers back from the E.U.
At least now we know where we stand.
Posted by Paul Marks at October 5, 2011 01:31 PM
