French President Nicolas Sarkozy adheres to the introduction of a financial transaction tax. If necessary, he wants to introduce the tax without Britain in the EU. It is designed to curb speculation and thus simultaneously says the state budget. At first glance, it kills two birds with one stone.
It cannot be that the purchase of property and goods are taxed at the grocery store, but not financial transactions. Thus founded by French President Sarkozy’s plans to occupy all financial transactions with a tax. In addition, one wants to curb speculation and reduce market volatility. No less of interest should also be the billion for the states. If one takes into account the debt crisis, they are certainly been pleased.
It is undisputed that the financial transaction tax (FTT) would affect the liquidity in the financial markets negatively. Nevertheless, whether the costs associated with a corresponding benefit in terms of lower speculative stock is facing? To this question, it cannot be answered from a scientific perspective. Likely, however, are currently is relies on the refinement of thought and FTT will penalize the information-driven trading in European stocks and bonds in favour of short-term derivatives trading.
This would be exactly the opposite of reaching what is intended. Because the derivatives trading can be in contrast to the secondary market much more easily, escape the fiscal access to the EU. This means that cash flows from the stock and bond markets in the derivatives markets. This then suffer especially medium enterprises, because in this segment, the liquidity is too low already. For these companies, the equity and debt capital through the stock market is still expensive.
Moreover, it is argued that the VAT exemption of the financial sector, as and the financial transaction tax are the wrong tools. For they not only taxed the resulting value in the financial sector, but also and all transactions. Therefore, it not to be justified. Usually in this case, one of the most important reasons for such a claim is the lack of sales tax in the financial sector. In fact, each one alone could make your conclusion.