Go Georgie Go!

Blimey, who would have thought it?

Little Georgie Osborne actually telling the unvarnished truth for a change.

And I really would, dearly, love to see the Oxfam, Owen Tudor, Christian Aid, Ritchie nexus trying to chew their way out of that rousing condemnation of the Robin Hood Tax.

6 thoughts on “Go Georgie Go!”

  1. ‘…taxpayers….have to pay on through sovereign debt auctions.’
    I have no idea what this means, and so cannot follow the logic whereby taxpayers pay and not bankers. Can anyone help me out?

  2. @ PMJ
    The tax will be charged on every transaction – therefore the net return to an investor will be reduced – if the coupon on the debt stays the same. So an American or Chinese investor will not buy the European sovereign debt unless the coupon increases by enough, relative to Australian or American or Japanese sovereign debt to compensate by giving the same expected after-tax return (or the same margin over the return on US/Oz/Japanese debt). As the marginal investor determines the price at which debt is issued, the coupon on the *whole* of the debt issue has to go up. So the poor taxpayer has to pay more in interest on its debt.

  3. OK, thank you very much. That clears that up. I must say I would be opposed to the tax on the basis that once the principle was accepted it would forever be a hostage to fortune to politicians who would quickly put the rate up.

  4. “.. the logic whereby taxpayers pay and not bankers”: even if you couldn’t see the logic, by what madness could you ever have considered that “the bankers” would have paid?

  5. I thought taxpayers are exactly the people who pay taxes. By definition.

    One of the things I have been pondering is the extent to which the tax will fall on consumers who buy anything which has, at any stage in its production, passed through a foreign port. Given we import so much, it seems like it would hit consumers as prices on imported goods become stickier.

    The other question, leading on from that, is our position as a trading nation. I need to work this one through more but it feels like a tax on foreign currency transactions would destroy a large part of our status in world trade, too.

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