On the Tobin (of FTT) Tax:
MEPs were voting today on an own-initiative report by Greek Socialist Anni Podimata and backed by the Economic and Monetary Affairs Committee. It was approved by 529 to 127, with 18 abstentions. However, as it was not introduced by the European Commission, it is of no legislative consequence.
The bit that they are all missing (and this does include such foolish cheeleaders as Owen Tudor over at the TUC) is that it simply isn\’t the banks, or the bankers, who will end up coughing up the economic burden of such a tax.
It\’s everyone who interacts with the financial system. Everyone who transfers money for example, everyone who buys foreign currency: and everyone who buys something from someone who has transferred money or changed currencies. Everyone, that is, who buys from any supplier who is actually plugged into the financial system.
That is, any and everyone who purchases a product in the modern economy.
I can think of only two groups who would be unaffected. Those in an entirely local, cash based economy and those buying illegal drugs.
It does take some doing to impose a tax which hits everyone except tax dodgers and heroin dealers.