scholarly journals Financial sector taxation: Financial activities tax or financial transaction tax?

2011 ◽  
Vol 59 (2) ◽  
pp. 205-212 ◽  
Author(s):  
Danuše Nerudová
Keyword(s):  
Value Added ◽  
Financial Sector ◽  
Point Of View ◽  
Substantial Contribution ◽  
Financial Transaction ◽  
Financial Transaction Tax ◽  
Pros And Cons ◽  
The Stability ◽  
Transaction Tax ◽  
The Eu

The recent financial crises has revealed the need to improve and ensure the stability of the financial sector to reduce negative externalities, to ensure fair and substantial contribution of the financial sector to the public finances and the need to consolidate public finance. All those needs represent substantial arguments for the discussion about the introduction of financial sector taxation. There are discussed in the paper two possible schemes of financial sector taxation – financial transaction tax and financial activities tax. The aim of the paper is to research the possibility of the introduction of financial sector taxation, to discuss the pros and cons of two major candidates on financial sector taxation – financial transaction tax and financial activities tax and to suggest the possible candidate suitable for the implementation on the EU level. Financial transaction tax represents the tool suitable mainly on global level, for only in that case enables generate sufficient financial resources. From EU point of view is considered as less suitable, for it bears the risk of reallocation. Therefore the introduction of financial activities tax on EU level is considered as a better solution for the financial sector taxation in the EU, for financial sector is exempted from value added tax. With respect to the fact, that the implementation would represent the innovative approach to the financial sector taxation, there are no empirical proves and therefore this could be the subject of further research.

scholarly journals The financial transaction tax: an ANOVA assessment of selected EU countries

Equilibrium ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 29-48
Author(s):  
Manuela Raisová ◽  
Martina Regásková ◽  
Kornélia Lazányi
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Gdp Growth ◽  
Financial Transaction ◽  
Eu Countries ◽  
The United Kingdom ◽  
Financial Transaction Tax ◽  
Transaction Taxes ◽  
Transaction Tax ◽  
The Eu

Research background: There are various forms of fiscal taxation of the financial assets. In recent times, the discussion about financial transaction tax in the EU is associated with finding the solution to problems due to great financial crisis. The European Commission has made some efforts to strengthen capital regulation and it has adopted the Directive about implementing enhanced cooperation in the field of financial transaction tax, where it analyzed options and impacts of FTT according to those countries which have already implemented similar transaction taxes in their national legislatives. Purpose of the article: Our aim is to find out the economic relationship between FTT and economic growth and to analyze the effect of FTT within selected EU countries. Methods: In this paper, we will analyze the banking environment in the EU area, and we emphasize the correlation between tax policy and economic growth. We will test FTT through three-way mixed-effects ANOVA, and analyze three Member states, Belgium, Ireland and the United Kingdom, which have very active attitude to implementation of FTT within other EU countries. Findings & Value added: We are interested in: (1) testing the relationship between the financial transaction tax (FTT) and economic growth (GDP); and (2) to verify the hypothesis that FTT could improve GDP growth in a country. We assume that if a country has adopted FTT in its tax system, then it will lead to a significant GDP growth, and so it could lead to financial market improvement after the crisis. Our results have shown that an increase in FTT volume would lead only to a negligible increase in the economic growth.

scholarly journals Financial Transactions Tax as an Integration Development Instrument in the EU

2020 ◽  
pp. 165-172
Author(s):  
Ilya Lifshits ◽  
Keyword(s):  
European Commission ◽  
Global Financial Crisis ◽  
Customary Law ◽  
The European Union ◽  
Member States ◽  
Financial Transaction ◽  
Financial Transaction Tax ◽  
Financial Transactions ◽  
Transaction Tax ◽  
The Eu

The adoption of a legal instrument relating to the harmonization of the ten Member States‟ laws on the financial transaction tax could be the first attempt in the EU history to establish an enhanced cooperation in the area of taxation. This project should be considered in the wider context of the financial sphere reform, which was caused by the global financial crisis. The draft Directive implementing enhanced cooperation in the area of the financial transaction tax has been discussed in the Council for 7 years but an accord has not been reached yet. The ambition of the European Commission to enlarge the scope of the financial transaction tax payers as much as possible is perceived by the non-participating Member States as an encroachment of their tax jurisdiction which contradicts the international customary law as well as The Treaty on the Functioning of the European Union. An examination of the reasons of unsuccessful negotiations may lead to a conclusion on drawbacks of the enhanced cooperation in taxation policy. It is not likely that this mechanism would be used in the future to tax a very mobile financial market where the tax base may be easily transferred to the non-tax states. Meanwhile the participation of the leading EU States in the project, a wide public support of the „Robin Hood Tax‟ and Brexit suggest that in the coming months financial transactions in ten Member States will be charged by the harmonized tax. However, the scope of the tax would be reduced in comparison with that in the initial draft of the European Commission.

The European Union as a Global Actor: The Case of the Financial Transaction Tax

2018 ◽  
Vol 26 (4) ◽  
pp. 704-720
Author(s):  
Marina Strezhneva
Keyword(s):  
Common Good ◽  
High Efficiency ◽  
World Order ◽  
The European Union ◽  
Financial Transaction ◽  
High Profile ◽  
Positive Externalities ◽  
Financial Transaction Tax ◽  
Transaction Tax ◽  
The Eu

The EU plays a high-profile role in the international arena, and yet this role still evades accurate conceptualization. Since the EU is not a state, it is commonly accepted assui generis; a normative power influencing the world order mostly by means of direct and intermediary persuasion. Despite this position, in practice when championing the global normative agenda, the EU does not always demonstrate high efficiency as a leader. This article studies the EU’s efforts to push through regional and global versions of a financial transaction tax, meant to promote the common good through the positive externalities it generates for the economy. The aim of the article is to arrive at an adequate explanation for the (in)ability of the EU to act as an agent of global governance in this case. The focus of attention is the inner organizational limitations on the EU’s behaviour as a global actor.

scholarly journals Financial Transaction Tax: Determination of Economic Impact Under DSGE Model

2015 ◽  
Vol 63 (2) ◽  
pp. 627-637 ◽  
Author(s):  
Veronika Solilová ◽  
Danuše Nerudová
Keyword(s):  
Economic Growth ◽  
Economic Impact ◽  
Financial Sector ◽  
The United States ◽  
Dsge Model ◽  
Tax Rate ◽  
Financial Transaction ◽  
Financial Transaction Tax ◽  
Transaction Tax

The discussion about the possible taxation of the financial sector has started in the European Union as a result of the financial crisis which has spread to the Europe from the United States in 2008 and consequently of the massive financial interventions by governments made in favour of the financial sector. On 14 February 2013, after rejection of the draft of the directive introducing a common system of financial transaction tax in 2011, the European Commission introduced the financial transaction tax through enhanced cooperation. The aim of the paper is to research economic impact of financial transaction tax on EU (EU27 or EU11) with respect to the DSGE model which was used for the determination of impacts. Based on our analysis the DSGE model can be considered as underestimated in case of the impact on economic growth and an overestimated in case of the revenue collection. Particularly, the overall impact of the financial transaction tax considering cascade effects of securities (tax rate 2.2%) and derivatives (tax rate 0.2%) is ranged between −4.752 and 1.472 percent points of GDP. And further, is assumed that the relocation effects of business/trade can be in average 40% causes a decline of expected tax revenues in the amount of 13bn EUR. Thus, at a time of fragile economic growth across the EU and the increased risk of recession in Europe, the introduction of the FTT should be undesirable.

Socializing Global Economic Governance: Introducing a Financial Transaction Tax

2018 ◽  
Vol 26 (4) ◽  
pp. 686-703
Author(s):  
Vladimir Nikolaevitch Zuev ◽  
Elena Yakovlevna Ostrovskaya
Keyword(s):  
Financial Stability ◽  
Financial Sector ◽  
Socially Responsible ◽  
The Public ◽  
Financial Transaction ◽  
Financial Transaction Tax ◽  
Excessive Speculation ◽  
Transaction Tax ◽  
Global Financial System ◽  
Global Economic Governance

The uncontrolled exponential growth of the financial sector and its rapid globalization led to an equally rapid increase in challenges to the global financial system. The already undertaken measures aimed at improving financial stability are necessary, yet not sustainable enough. The aim of this article is to provide more analytical arguments to favour another solution – the introduction of the Financial Transaction Tax (FTT), and to increase the public and academic awareness of the necessity of such a measure. The ongoing reforms do not solve the key problem – the enormous cost to rescue the financial sector, subsidized to a large extent by the taxpayer, and the absence of a fair contribution from the financial sector. FTT as a tool to discourage excessive speculation without hindering other activities seems to be a socially responsible measure working for financial stability at the same time. To efficiently socialize its impact, however, it is critical to define exact patterns of spending of the funds raised by the states.

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