Taxing Financial Transactions: Issues and Evidence

@article{Matheson2011TaxingFT,
  title={Taxing Financial Transactions: Issues and Evidence},
  author={Thornton Matheson},
  journal={International Monetary Fund (IMF) Research Paper Series},
  year={2011}
}
  • Thornton Matheson
  • Published 1 March 2011
  • Economics
  • International Monetary Fund (IMF) Research Paper Series
In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of (1) raising revenue for a variety of possible purposes and/or (2) helping to curb financial market excesses. This paper reviews existing theory and evidence on the efficacy of an FTT in fulfilling those tasks, on its potential impact, and on key issues to be faced in designing taxes of this kind. 
View on SSRN
elibrary.imf.org
193 Citations
Highly Influential Citations
33
Background Citations
98
Methods Citations
10
Results Citations
1

193 Citations

Security transaction taxes: issues and evidence

In reaction to the financial crisis, increased attention has recently been given to security transaction taxes (STTs) as a means of (1) raising revenue for a variety of possible purposes and/or (2)…

Financial Transactions Taxes: Potential Revenue and Economic Implications

Given Donald Trump’s extreme income tax–cut proposal, even useful tax hikes may not be likely. But down the road, there may be a call for higher taxes again to support social policies and manage, in…

The Incidence of Financial Transactions Taxes

As financial transactions taxes (FTT) have moved to be part of the mainstream debate on tax policy, there has been increased attention to the incidence of such taxes. This is an important aspect to…

FINANCIAL TRANSACTION TAXES IN THEORY AND PRACTICE

We explore issues related to a financial transaction tax (FTT) in the United States. We trace the history and current practice of the tax in the United States and other countries, review evidence of…

Politically Motivated Taxes in Financial Markets: The Case of the French Financial Transaction Tax

This paper studies the effects of the introduction of the French financial transaction tax in August 2012. With the tax, the French government aims to generate revenues for financing the burdens of…

Politically Motivated Taxes in Financial Markets: The Case of the French Financial Transaction Tax

This paper studies the effects of the introduction of the French financial transaction tax in August 2012. With the tax, the French government aims to generate revenues for financing the burdens of…

New Bank Taxes: Why, and What Will be the Effect?

This paper analyses several options for the introduction of new taxes on the financial sector. It sets out possible objectives for such taxes, and in particular analyses the Financial Activities Tax…

Financial transaction tax: review and assessment

We explore whether a Financial Transactions Tax (FTT) is likely to correct the market failures that have contributed to the financial crisis, to what extent FTT succeeds in raising revenues, and how…

On the Incidence of a Financial Transactions Tax in a Model with Fire Sales

This paper studies the impact of a financial transactions tax on a financial market where financial institutions trade with each other. Assets are marked to the market and financial institutions with…

On the non-homogeneous effect of financial transaction taxes

This paper investigates the impact of a financial transaction tax (FTT) in a classic financial market setting. The benchmark analysis is based on an extension of the model presented in Kyle (1985).…
...

References

SHOWING 1-10 OF 108 REFERENCES

Using tax policy to curb speculative short-term trading

This article addresses the question of the desirability of a tax on transactions in the securities industry. Many of the other major industrialized economies impose such a tax. In Japan, for…

Securities Transaction Taxes for U.S. Financial Markets

This paper examines the viability of security transaction excise taxes (STETs) as one policy tool for promoting a more stable financial environment, specifically with respect to the U.S. economy.…

International Experiences with Securities Transaction Taxes

This paper studies the international experience with securities transaction taxes (STTs), using the Swedish and British systems as case studies. We argue that STTs are best thought of as taxes on…

Transaction Taxes and Financial Market Equilibrium

The author explores the effects of trade-size dependent transaction taxes on market liquidity and information acquisition. Transaction taxes cause strategic informed traders to scale back their…

Securities Transaction Taxes: An Overview of Costs, Benefits and Unresolved Questions

Many major developed countries, including Germany, Japan and the United Kingdom, have some form of tax on securities transactions. The Clinton administration recently considered imposing fees of from…

When financial markets work too well: A cautious case for a securities transactions tax

Unlike most major industrialized nations, the United States does not impose an excise tax on securities transactions. This article examines the desirability and feasibility of implementating a U.S.…

The Currency Transaction Tax: Rate and Revenue Estimates

The Currency Transaction Tax (CTT) is emerging as a leading new financial instrument for government seeking to raise large amounts of global, independent, and stable monies for international…

Some effects of transaction taxes under different microstructures

Transaction taxes and the behavior of the Swedish stock market

Securities Transaction Tax and Market Efficiency: Evidence from the Japanese Experience

This study examines the effect of transaction costs on the time series behavior of stock returns over a period surrounding the April 1989 changes in tax rates on securities transactions and capital…
...