Comments on: Why we don’t need a Tobin Tax http://www.owen.org/blog/398 Thoughts on development and beyond Tue, 07 Feb 2012 20:50:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tim Worstall http://www.owen.org/blog/398/comment-page-1#comment-1747 Tim Worstall Mon, 21 Nov 2005 11:58:31 +0000 http://www.owen.org/blog/?p=398#comment-1747 And hypothecation of taxes is a bad idea anyway. There is no discernable link between what can efficiently be raised from one activity and what needs to be spent on another. And hypothecation of taxes is a bad idea anyway.
There is no discernable link between what can efficiently be raised from one activity and what needs to be spent on another.

]]> By: Paul Staines http://www.owen.org/blog/398/comment-page-1#comment-1748 Paul Staines Mon, 21 Nov 2005 09:24:36 +0000 http://www.owen.org/blog/?p=398#comment-1748 And it wouldn't work anyway. The London Eurodollar bond market was created by Kennedy introducing a taax on interest income. Taxes drive trade away, the Tobin tax would probably make Switzerland or the Bahamas the centre of world currency trading (currently it is London). Incidentally - Banks are already taxed on their profits, a transacation tax would merely reduce their profits available for taxation. And it wouldn’t work anyway. The London Eurodollar bond market was created by Kennedy introducing a taax on interest income. Taxes drive trade away, the Tobin tax would probably make Switzerland or the Bahamas the centre of world currency trading (currently it is London).

Incidentally – Banks are already taxed on their profits, a transacation tax would merely reduce their profits available for taxation.

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