With the European Commission seriously considering a tax on financial transactions - sometimes referred to as a “speculation tax”- its opponents are shifting their campaign into high gear. The predictions of disaster from the financial industry if the European Union chooses to implement it are, however, misguided.
The opponents' claims go along three lines: the tax will not be enforceable; the tax will just be passed on to consumers and therefore will not be taking money from the intended targets in the financial industry; and finally, it will raise the cost of capital and therefore slow growth.
Each of these objections is either altogether wrong or hugely exaggerated.
Checkout this article by Dean Baker and get the whole story
Also well worth a quick browse is the Global Unions’ Statement to the G20 Summit
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