Another tax to repay the government’s losses reaching dead-end
Last weekend the G20 finance ministers met to discuss the global economic climate. Gordon Brown, the Prime Minister, proposed a new tax called Tobin Tax (or to me and you,’ Financial Transaction Tax’). It appears that the PM is losing is battle to create this tax and losing his battle to remain Prime Minister.
I believe that a new tax is not needed and not a feasible way to repay the debt that has burdened the government’s balance sheet. I feel this tax will not prevail and agree with the other G20 countries. In the article (which is linked below) it states that the PM has backing from a fund manager and states that the banks cannot assume trust to resume without significant change. However, I believe that the significant change cannot come in the form of Financial Transaction Tax. I think there are other forms of revenue for the government and Tobin Tax is not one of them.
Below is the link to the Accountancy Age article: