Stamp duty: liquidity risk

A financial transaction tax would lead to huge revenue for the state. Nevertheless, the burden would probably passed. G20 Finance Ministers on Friday will try to find answers to these questions in Washington. Discussed is a stock transfer tax. However, that would be the wrong way, because the cost of such a tax shoulder the wrong people, says Prof. Kaserer. James Tobin’s hot in the crisis.

The Americans proposed in 1972, to impose a currency transactions tax. The Tobin tax was born. Now, in some countries is thinking about a new instrument. A stock transfer tax, or more generally, a financial transaction tax to curb speculation in the financial market But why should the state restrict a new general tax “speculation”? In fact, the questions arise. Who makes such a tax?

In addition, what it does? If no exceptions are defined, what happened in the past when such a tax usually, especially the trading of institutional investors would be punished. Because that would reduce the liquidity of the markets and the volatility increase. The resulting costs are ultimately the private investors in the form of higher risks. Should not be excluded that institutional investors can shift part of the economic cost of the tax to the customer (as well as the private savers), which then diminishes but their net returns significantly.

A debt ceiling for the euro countries

Greece’s financial situation has been stabilized. It clearly shows that the financial turmoil in Greece were not unique. To be to be bailed out Greece, the Maastricht Treaty was bypassed. In no way should this be the norm. Rather, the EU must find ways to cope against such recurrences.

However, where to start it? The deep concern for the controllability of the public finances and the debate about the possibilities of sovereign defaults show that the rules of the Maastricht Treaty and the Stability and Growth Pact is not sufficient. States must be reliable and self-discipline.

One answer is the introduction of constitutionally enshrined debt brakes. It may be the refinement of the German debt brake argue, but their value is undoubtedly the particular credibility by enshrining in the Constitution.