[OPE-L:6827] Re: Re: Re: Tobin Tax

From: Paul Cockshott (paul@cockshott.com)
Date: Thu Mar 28 2002 - 06:35:18 EST

> the Tobin Tax seems impractical.  Which governments would impose the 
> tax on a two sided transaction? How could tax regulations be drawn up 
> so that they could not be evaded easily through derivatives 
> transactions? As Diane Coyle notes, one could simply substitute a 
> swap for the straight exchange of currencies which was going to be 
> taxed. Moreover, it is doubtful that a low Tobin tax would 
> fundamentally alter the balance between the supposedly good 
> transactions financing trade and direct investment, which form a very 
> small proportion of the total, and the supposedly bad short term 
> investment and speculation.
> Yours, Rakesh

I dont see that it is impractical at all. It would probably be sensible
for the tax to be levied on purchases of foreign currency. 

It is possible for states to implement strict currency controls, implementing
a tax on exports of currency would be well within their administative 

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