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We have included below a selection of influential reports to have been published on Financial Transaction Taxes and the Currency Transaction Levy in recent years:
Innovation with impact: financing 21st century development:
The Gates Foundation, November 2011
In his report to the G20 in Cannes (November 2011) on new sources of finance for development Bill Gates, founder of Microsoft, shows his support for a Financial Transactions Tax (FTT). It explains that FTTs already exist in many countries and generate significant revenue - showing that they are indeed techincially feasible. If implemented on a G20 wide basis, the reports argues that an FTT coould generate about $48 billion annually.
Using France as a case study, this report develops a guide to implementing a domestic, unilateral tax on financial transactions. It recommends implementing an FTT design similar to the UK Stamp Duty, and applying it to bonds and derivatives transactions. At low rates, such a tax is estimated to generate over 12 billion euros annually in a country like France. Like similar FTTs in other countries, the FTT proposed here is unlikely to have a significant negative impact on the domestic financial markets of the countries who implement it.
Quid Pro Quo - Redressing the privileges of the banking industry:
Prieg,L., Greenham,T. & Ryan-Collins, J., 2011
The New Economics Foundation
Tax on Financial Transactions: an implementation guide:
Commissioned by UNITAID, September 2011
The Gates Foundation, November 2011According to this report banks enjoy an implicit subsidy from taxpayers; because they will be bailed out, if necessary, markets view lending to them as low risk. It estimates that in 2010 the ‘big five’ UK banks enjoyed a combined ‘too big to fail’ (TBTF) subsidy of £46 billion. Subsquently banks have come to occupy a unique and privileged economic position in relation to their customers and to other industries, enabling them to make excessive profits.
Taxing Financial Transactions, An Assessment of Administrative Feasibility:
Brondolo, J., 2011
IMF Working Paper
This paper assesses the administrative feasibility of a tax on a broad range of financial instruments. It analyses the factors that facilitate or complicate the administration of an FTT.
Taxing Financial Transactions, Issues and Evidence:
Matheson, T., 2011
IMF Working Paper
In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of raising revenue and helping to curb financial market excesses. This paper reviews existing theory and evidence on the efficacy of an FTT in fulfilling those tasks and on key issues to be faced in designing taxes of this kind.
Financial Sector Taxation:
The European Commission, 2010
In the context of a current financial crisis and need for fiscal consolidation, this paper analyses potential instruments to raise
additional tax revenues from the financial sector. These include a Financial Transaction Tax (FTT) and the Financial Activities Tax (FAT). It addresses the advantages and drawbacks of each and concludes that both could be possible candidates.
Globalizing Solidarity: The Case for Financial Levies:
Leading Group., 2010
The Leading Group on Innovative Financing for Development.
This ground-breaking report was written by a Committee of Experts from 9 countries, including the UK, France, Germany and Japan. It assesses five different options for greater taxation of the financial sector and concludes that the taxing of currency transactions is the best way to most immediately boost funding for international development and the response to climate change.
Financial Sector Taxation:
European Commission., 2010
Communication from the European Commission: Brussels
This report argues that the only way to achieve financial stability and financial integration in Europe is to move towards a European-level bank resolution framework that has both funding and intervention authority.
Financial Stability Report:
Bank of England., 2010
The Financial Stability Report aims to identify key risks to UK financial stability and to stimulate debate on policies needed to manage and prepare for these risks.
The Impact of the Global Financial Crisis on the Budgets of Low-Income Countries:
Kyrili, K., and Martin, M., 2010
Development Finance International
Oxfam
This report examines the impact of the global financial crisis on the budgets of low-income countries, especially their spending to reach the Millennium Development Goals.
The Tobin Tax - A Review of the Evidence:
McCulloch, N., and Pacillo, G., 2010
Institute of Development Studies
This report reviews the literature on how a Tobin Tax might be implemented, the amount of revenue that it might realistically produce, and the likely incidence of the tax.
Financial Sector Taxes:
Dolphin, T., 2010
IPPR: London
The purpose of this paper is two-fold: Firstly to assess the scope for the UK’s financial institutions to pay an additional £20 billion annually in tax revenues in order to provide funds that could be used to fight poverty and climate change. And secondly to examine the distributional impact of such taxes.
Risk, reward and responsibility: the financial sector and society:
HM Treasury, 2009
Following the 2008 financial crsis, questions were rasied regarding the balance of risks, rewards and responsibilities betweensociety and the financial sector. In response, this paper looks at regulatory reform and efforts to improve financial institutions’ corporategovernance and risk management.
The Currency Transaction Tax: Rate and Revenue Estimates:
Schmidt, R., 2008
United Nations University Press: Tokyo, New York, London
Meeting the Millennium Promise:
A Report on Innovative Finance for Development from the UK All Party Parliamentary Group for Debt, Aid and Trade.
House of Commons
November 2007
The report takes evidence from a range of governments, NGOs, financial actors, academics and other stakeholders into possible innovative sources of finance to meet the Millennium Development Goals. You can download the full report and the Executive Summary by clicking on the link above
Taking the Next Step: Implementing a Currency Transaction Development Levy:
Hillman, D., Kapoor, S., and Spratt, S., 2007
Norwegian Ministry of Foreign Affairs
The Currency Transaction Tax - Enhancing Financial Stability and Financing Development:
Kapoor, S., 2004
Tobin Tax Network
Innovative Finance Mechanisms:comparing Aviation Tax and Currency Transaction Tax
Sony Kapoor
The Action Against Hunger and Poverty
2004
Commissioned by leaders of France, Brazil, Chile and Spain
Jean-Pierre Landau's report for President Chirac
2003
President Chirac of France commissioned Jean-Pierre Landau to assess various innovative sources for financing development. The result is this comprehensive report.
On the Feasibility of a Tax on Foreign Exchange Transactions
Spahn, P., B., 2003
Report commissioned by the Federal Ministry for Economic Cooperation and Development, Bonn.
The Economic Case for a Currency Transaction Tax
Thomas Palley, Director of the Globalization Reform Project.
A short presentation setting out the economic arguements for a currency transaction tax.
Revenue Potenital of the Tobin Tax for Development Finance: A Critical Appraisal
Nissanke, M., 2003.
A Feasible Foreign Exchange Transactions Tax & Efficient capital controls
1999
Professor Rodney Schmidt of the North-South Institute is a renowned CTT expert and author of a number of key studies. Central to his work is the fact that a stamp duty can be levied unilaterally on a currency rather than on a jurisdiction or country, thus negating many of the technical objections.
A Proposal for International Monetary Reform
James Tobin, 1978
Yale University
The current Financial Transactions Tax (FTT)has its roots in the Tobin Tax: read James Tobin's proposal for a 1% tax on all foreign exchange tansactions as a means to reduce speculative trading.
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