What are these people smoking?

An FTT will reduce the fragmentation of the internal market.

Eh?

A tax on transactions will increase market integration? You what?

Actually reading the report their basic contribution is to point out that it\’s been very embarassing what with the EU report itself showing that an FTT would lose tax revenue. This was because the underlying model used showed that an FTT would raise the cost of capital to companies and thus reduce investment.

So, we\’ve changed that model so that the result is less embarassing.

Hurrah, trebles all round!

4 comments on “What are these people smoking?

  1. I notice that the the TUC blogger didn’t quote this bit, that the FTT could repair fiscal finances, and that:

    Fiscal consolidation could therefore reduce the cost of government debt, and as many European institutions including the ECB and Commission tell us, this could help crowd-in private investment.

    I wonder why?

  2. I suppose once the French intoroduce a unilateral FTT, that will “fragment” EU markets (France vs the rest), so one could then argue that an EU-wide FTT would indeed reduce that fragmentation.

    Still doesn’t make it a good idea though.

  3. I note from the article that the huge proceeds from this victim free tax wil be ring fenced and applied to ‘combat poverty and climate change’. Pass me the bong someone…So I can have some of what they’re having.

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