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Make bankers pay their fair share
“This tax could help resolve the crisis in social housing or restore the cuts to drugs projects and women’s refuges.”
“An FTT will help fulfill the vision of a world free of poverty.”
“An FTT is a way for developed countries to fund actions to tackle climate change.”
“A tiny tax from those who helped create the economic crisis would mean more investment in public services.”
If Ireland adopt the FTT, it will raise an estimated €320 to €360 million in revenue. This amounts to an extra €1 billion every three years. This revenue raised will be fully available for the Irish Government to invest.
We are suggesting it is invested:
If the revenue from the FTT were reinvested back into the economy - employment would rise. If 50% of the estimated €340 - €360 million was returned to the Irish economy the following number of jobs can be created – either through spending increases or tax cuts:
These estimates come from the Nevin Economic Research Institute and include not only direct job creation but employment increases from the increased demand (e.g. consumer spending). The introduction of the FTT is highly likely to raise the overall employment in the economy.
The FTT is constructed so that it is very difficult to avoid. It does not matter where a company is based in the EU. The only way that a financial institution could avoid paying the tax would be to stop all business with countries that have an FTT. This would be self-defeating for almost all financial institutions. This means that if Ireland were to adopt the FTT, there would be no incentive for financial institutions to move to London.
In recent years there has been an explosion in high frequency trading - transactions that happen every few seconds. There has also been a huge increase in derivatives, making the volume of financial transactions increase to more than 70 times the size of the world economy. Many serious commentators believe this volume is dangerously large and de-stabilising. Many of the most speculative, risky and socially useless transactions are based on very small profit margins, meaning that even at a very low rate such as 0.05%, an FTT would shrink the size of the market by reducing the profitability of the most risky transactions. Many economists support the FTT for this reason.