Comments on: Taxing financial transactions: why the underdog is still my favourite http://touchstoneblog.org.uk/2010/01/taxing-financial-transactions/ Policy news and comment from the Trades Union Congress (TUC) Sat, 11 Feb 2012 01:36:36 +0000 hourly 1 By: Richard Murphy http://touchstoneblog.org.uk/2010/01/taxing-financial-transactions/comment-page-1/#comment-5470 Richard Murphy Thu, 28 Jan 2010 09:40:58 +0000 http://www.touchstoneblog.org.uk/2010/01/taxing-financial-transactions/#comment-5470 Let me address the question raised: automated payments transactions taxes are something the TUC is familiar with - we have looked at them There are issues - and they're certainly not an alternative to CGT - which is an essential back stop for income tax And nor are they a replacement for income tax - they could not really be made progressive But - they are more progressive than any VAT because they include transactions that the wealthy tend to undertake which are exempt from that tax - which imposes heavily on the poorest For that reason I personally support them as an alternative or supplement to VAT which can then be at a lower rate I also support them for another reason - the Revenue then would know about every bank account - and that in itself has a massive potential benefit in also tackling tax evasion So - it's an issue on which I hope we will progress - but it needs very careful consideration before a proposal can be made Richard Murphy www.taxresearch.org.uk/blog Let me address the question raised: automated payments transactions taxes are something the TUC is familiar with – we have looked at them

There are issues – and they’re certainly not an alternative to CGT – which is an essential back stop for income tax

And nor are they a replacement for income tax – they could not really be made progressive

But – they are more progressive than any VAT because they include transactions that the wealthy tend to undertake which are exempt from that tax – which imposes heavily on the poorest

For that reason I personally support them as an alternative or supplement to VAT which can then be at a lower rate

I also support them for another reason – the Revenue then would know about every bank account – and that in itself has a massive potential benefit in also tackling tax evasion

So – it’s an issue on which I hope we will progress – but it needs very careful consideration before a proposal can be made

Richard Murphy
http://www.taxresearch.org.uk/blog

]]> By: a van hook http://touchstoneblog.org.uk/2010/01/taxing-financial-transactions/comment-page-1/#comment-5464 a van hook Wed, 27 Jan 2010 22:23:29 +0000 http://www.touchstoneblog.org.uk/2010/01/taxing-financial-transactions/#comment-5464 There are a lot of people out there saying "a bank tax will just be passed on to consumers. You can't tax companies, they just pass it on to you and me." Well, of course they will pass on the transaction tax on my activities - at 0.015% I can handle that. I dont believe They will be jacking up my checking account fees, etc. unless competition for my banking suddenly drops and I dont have as many alternatives to choose from. I like the idea of a financial transaction tax. I wonder if you could ultimately replace capital gains taxes with a transaction tax. Have you heard about the Autmated Payments Transaction tax? http://www.apttax.com There are a lot of people out there saying “a bank tax will just be passed on to consumers. You can’t tax companies, they just pass it on to you and me.”
Well, of course they will pass on the transaction tax on my activities – at 0.015% I can handle that. I dont believe They will be jacking up my checking account fees, etc. unless competition for my banking suddenly drops and I dont have as many alternatives to choose from.

I like the idea of a financial transaction tax. I wonder if you could ultimately replace capital gains taxes with a transaction tax. Have you heard about the Autmated Payments Transaction tax? http://www.apttax.com

]]>