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BackA recent study commissioned by the German Ministry of Finance shows that the implementation of the Financial Transaction Tax would generate an additional income of over 17 billion euros in Germany alone. Admittedly, speculators could in many cases take their transactions to other countries; however that would not harm the economy.
Additional income without harming the economy!
In Germany alone, the planned tax on financial transactions should generate at least 17.6 billion euros. In its assessment, the study of the Danish consultancy “Copenhagen Economics” even takes a massive shift and flight of a number of financial activities into account. Otherwise one could expect an amount of 88 billion. However, the most important finding is: this shift does not harm the German economy! On the contrary, according to Süddeutsche Zeitung, this additional income could even help to solve all the country’s infrastructural problems. Due to its low tax rate, in particular computer-controlled high-frequency trading has been targeted, which means that the population too will hardly be impacted by the FTT. Hence, share transactions will accrue 0.1 percent taxes and trading derivatives 0.01 percent.
Reversing gradual implementation!
The study also shows that even with the current coalition of eleven states, establishing the FTT could have a very positive effect on both tax revenue and economy. Unfortunately, the participating countries Germany, France, Italy, Belgium, Austria, Spain, Estonia, Greece, Portugal, Slovakia and Slovenia have recently agreed on a gradual implementation and therefore unnecessarily prolonged proceedings. However, in particular against the background of the current study, these states are losing valuable income, which might, for example, be used to finance a wage tax reduction or could be spent within the education sector.
AK and ÖGB have been fighting for the implementation of the Financial Transaction Tax for years, as on the one hand this tax is better equipped to regulate the financial market, whilst at the same time being able to achieve a fairer taxation of the return on capital. To accomplish this, AK and ÖGB in cooperation with European allies, have in the past launched several very successful actions and campaigns.
Further information:
Study: A European Financial Transaction Tax – Revenue and GDP effects for Germany
In Germany alone, the planned tax on financial transactions should generate at least 17.6 billion euros. In its assessment, the study of the Danish consultancy “Copenhagen Economics” even takes a massive shift and flight of a number of financial activities into account. Otherwise one could expect an amount of 88 billion. However, the most important finding is: this shift does not harm the German economy! On the contrary, according to Süddeutsche Zeitung, this additional income could even help to solve all the country’s infrastructural problems. Due to its low tax rate, in particular computer-controlled high-frequency trading has been targeted, which means that the population too will hardly be impacted by the FTT. Hence, share transactions will accrue 0.1 percent taxes and trading derivatives 0.01 percent.
Reversing gradual implementation!
The study also shows that even with the current coalition of eleven states, establishing the FTT could have a very positive effect on both tax revenue and economy. Unfortunately, the participating countries Germany, France, Italy, Belgium, Austria, Spain, Estonia, Greece, Portugal, Slovakia and Slovenia have recently agreed on a gradual implementation and therefore unnecessarily prolonged proceedings. However, in particular against the background of the current study, these states are losing valuable income, which might, for example, be used to finance a wage tax reduction or could be spent within the education sector.
AK and ÖGB have been fighting for the implementation of the Financial Transaction Tax for years, as on the one hand this tax is better equipped to regulate the financial market, whilst at the same time being able to achieve a fairer taxation of the return on capital. To accomplish this, AK and ÖGB in cooperation with European allies, have in the past launched several very successful actions and campaigns.
Further information:
Study: A European Financial Transaction Tax – Revenue and GDP effects for Germany