This article is about a tax levied on transactions in the financial sector. For APT Tax–dealbook fx 2 forex trading small tax levied on each transaction in an economy, see Automated Payment Transaction tax.
A financial transaction tax is a levy on a specific type of financial transaction for a particular purpose. So if an institution never carries out the taxable transaction, then it will never be subject to the transaction tax. There are several types of financial transaction taxes. Some have been implemented, while some are only proposals.
Concepts are found in various organizations and regions around the world. The year 1694 saw an early implementation of a financial transaction tax in the form of a stamp duty at the London Stock Exchange. The tax was payable by the buyer of shares for the official stamp on the legal document needed to formalize the purchase. Instead of a fixed tax amount per transaction, the tax was in the amount of 0. 1932, in the context of the Great Depression, then eliminated in 1966.
In 1936, in the wake of the Great Depression, John Maynard Keynes advocated the wider use of financial transaction taxes. In 1972 the Bretton Woods system for stabilizing currencies effectively came to an end. In that context, James Tobin, influenced by the work of Keynes, suggested his more specific currency transaction tax for stabilizing currencies on a larger global scale. In 1989, at the Buenos Aires meetings of the International Institute of Public Finance, University of Wisconsin-Madison Professor of Economics Edgar L. As the EU, European free trade and Euro came together, various financial transaction taxes were considered openly. One non-tax regulatory equivalent of Tobin’s narrow tax, to require “non-interest bearing deposit requirements on all open foreign exchange positions”, was considered in particularly but rejected. Automated Payment Transaction tax since it uniformly taxed all transactions.