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UK's rejected bid to introduce Financial Transaction Tax

If you are looking for expert comment on Financial Transaction Tax Warwick Business School Professor of Practice Jon Rushman, who was managing director at BlackRock before moving into academia, has researched the area.
 
Professor of Practice Jon Rushman said: “I am not at all in favour of Financial Transaction Taxes (FTTs). I think it is hard to argue that they fulfil a social purpose and describing them as ‘Robin Hood’ taxes is inaccurate and politically devious.
 
“They certainly aren’t taxes on bankers as some believe. They are taxes on investors, and I count anyone with funded pension or and ISA as an investor. So I fully support the UK’s objections.
 
“My research into the effects of Financial Transaction Taxes looked at what happened when the French introduced a 0.2% tax on all transactions on French equities in 2012. We found that the likely effects of the FTT were indeed lower trading volumes and volatility, but also lowering returns to French equity relative to other Eurozone equities.
 
“The ruling out of Luxembourg this week is a technicality. The argument still has a long way to run before any possible implementation. Under this government, the UK’s objection will likely become a point of principle and a source of friction with the EU. Indications are that a possible future Labour government would be more inclined to go along with the EU’s FTT proposals. That inclination could be amplified by continued propagation of the idea that the tax hurts bankers with no cost to ordinary people.
 
“Having watched markets become steadily more accessible and efficient in my lifetime through a combination of de-regulation and technology, I dislike attempts to reverse the trend. The EU was founded upon the ideas of free movement of people and capital and should remain committed to those guiding principles. I would find a centrally imposed FTT just as objectionable as a €100 levy for crossing a border.”
 
To interview Professor of Practice Jon Rushman contact: Jon.Rushman@wbs.ac.uk
Tel: 024 765 22701