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zimbawawa on 22 June 2012
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Kasz216 said:
zimbawawa said:


VAT is a universal tax, I was referring to the latter which targets a specific group. Its a reasonably sound proposal. Have to do a bit of research to see if any traction has been made thus far, but it looks like a case where sheer political will is needed.

Well it's not like that's never happened before.

Sweden had a Financial Transactions tax for a while.

It ended up creating such a drop in trading that the tax ended up being "Revenue neutral"...

it ended up greatly hurting their stock market, only returning to form when the market tax was lifted.

So, I'm a little curious as to why people think it's a good idea... though if your wondering why Sweden is against such a tax...

that's why.  They implemented one it caused their stockmarket to plunge until they removed it.

If you want to stop high frequncy trading there are much better ways to do so.  Espeically since a LOT of high frequency trades get canceled before the order gets filled.  Which is often what's seen as the "Distorting" aspect.

Well Sweden is one example, it doesn't mean the idea is not feasible with other countries. Hell, even some countries have already adopted this idea in one form or another.

http://en.wikipedia.org/wiki/Financial_transaction_tax

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