I think this makes it the full house of the UK\’s newspapers: excepting the Morning Star perhaps.
Advocates of a tax on financial transactions say the proceeds could be used to help to stabilise indebted eurozone countries.
However, the IEA\’s report, compiled by economics expert Tim Worstall, concludes that such a tax would yield revenues of less than 0.1 per cent of GDP.
Worstall estimates that the tax would trigger a 1.76 per cent decline in GDP, which would cut tax revenues by between 0.7 per cent and 0.9 per cent of GDP.
\’The proposed tax collects 0.1 per cent of GDP while other tax collections fall by 0.7 per cent to 0.9 per cent of GDP,\’ he writes. \’It is very difficult indeed to describe this as an increase in revenue.\’
Well, OK, not quite the full house. I\’ve written pieces for the Indy, Times, Daily Sport, Express, Guardian (although only online) and certainly had stuff in the Sun (as a press thingummy).
The IEA report can be downloaded here.
The conclusion reads:
As well as the EU, several papers on FTTs have been written by other more or less reputable organisations including the IMF8. There have also been studies from organisations such as the TUC and the Robin Hood Campaign, but we have restricted ourselves to details from those bodies with at least a working knowledge of economics and financial markets.
The end result of this survey of papers about the proposed financial transactions tax is clear. It is not possible to impose an FTT on foreign exchange transactions in the EU. An FTT will not reduce volatility, it will increase it. An FTT would not have prevented either the Great Financial Crash or current sovereign debt problems. It would shrink those parts of the financial markets which did not in any manner contribute to these problems.
An FTT is feasible but then so are many things that are not desirable. The FTT would not increase revenue collected. Indeed it would reduce total revenue by shrinking the overall economy. Finally, those who would carry the economic burden of the FTT would not be the banks but workers and consumers in general, and their burden would be more than 100% of the revenue raised by the FTT.
I\’d be most interested in anyone who actually supports this tax trying to have a go at my evidence, logic or conclusions. Have at it peeps, you know you want to.