What is it and how does the financial transaction tax (Tobin Tax)?

There are several new measures contained in the Stability Law 2012-2013 has just been approved by the government and among them include that refers to the introduction in Italy of so-called Tobin Tax, which raise funds, along with the spending review, the resources to give implementing some of the new measures Dl.

The Tobin Tax is a tax on financial transactions, introduced in 1972 by Nobel Laureate in Economics James Tobin, to hit all transactions on the markets with the objective of stabilizing the markets, penalizing short-term currency speculation.

The rate on transactions between 0.5% to 1%. The new law establishes Stability, therefore, the introduction of this immediately Tobin Tax in Italy and the government said he was convinced that the measures are consistent with agreements reached at the European level but it also says ready to make the necessary adjustments .

Economy Minister Grilli has, however, stated that they will be excluded from the tax on financial transactions, government bonds. The Tobin tax in the European version of all financial transactions will require banks to do their part to contribute to the solution of the crisis.

According to the CEO of Fiat, Sergio Marchionne, "The Tobin Tax is fraught with political and social significance, because of the name Tobin, but I do not know if it will help economic growth." Andrea Baranes, president of the Cultural Foundation of Ethical Bank commenting on the decisions of the EU and Italy relating to the introduction of the Tobin tax, said: "It 'a very important result, but it is only a first step in the right direction. We will continue with even more force our activities to raise awareness of citizenship and pressure on institutions to oversee the rules for the application of the tax. "

 

15/10/2012

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Translated via software

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Source:

Italian version of ReteIngegneri.it