Bye Bye Robin Hood Tax!

Via, the IMF\’s report on financial sector taxation.

is not focused on core sources of financial instability. An FTT would not target any of the key attributes—institution size, interconnectedness, and substitutability— that give rise to systemic risk.

Its real burden may fall largely on final consumers rather than, as often seems to be supposed, earnings in the financial sector. No doubt some would be borne by owners and managers of financial institutions. But a large part of the burden may well be passed on to the users of financial services (both businesses and individuals) in the form of reduced returns to saving, higher costs of borrowing15 and/or increases in final commodity prices. … It is far from obvious that the incidence would fall mainly on either the better-off or financial sector rents

My point I think? That the incidence of the tax would not be on those eeeevil bankers, but on us plebs?

And my, how I have been mocked for making that point.

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