Finanztransaktionssteuer: Zielsetzungen und potenzielle Auswirkungen / Financial transaction tax: Objectives and potential effects

Michler Albrecht F. and Penatzer Markus

ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2012, vol. 63, issue 1, 85-108

Abstract: From an economic policy point of view the implementation of a financial transaction tax (FTT) is exceptionally attractive. Against the background of the present sovereign debt crisis the FTT promises absolutely necessary additional tax revenue and is supported - in contrast to other taxes - at the same time by the majority of the population. The FTT shall burden the financial sector and meets with it the supposed main causer of the financial and sovereign debt crisis. In addition, the FTT seems suitable to lower the transaction volumes on the financial markets which are responsible for high price volatilities and speculative bubbles and which endanger financial market stability all together. In this paper the different objectives and different variants of the financial transaction tax are explained first to discuss then the proposals of the European Commission for the introduction of the tax. The effects of the financial transaction tax can be analyzed with the help of the direct costs, the volume and the price effects as well as the allocation effects. In the result the effectiveness of the planned EU financial transaction tax must be questioned. The tax fulfills probably neither the fiscal character in terms of additional net tax revenues nor a steering function for the purposes of a higher financial market stability. The microeconomic and macroeconomic follow-on effects point to serious burdens for the national economies. If the economic policy is directed basically upon the realization of additional tax revenue, the implementation of a sales tax on stock market and other commercial or settlement fees appears to be the better instrument, because their follow-on effects are clearly low.

Date: 2012
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DOI: 10.1515/ordo-2012-0109

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