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Thoughts about Global Financial Taxation

The idea of taxation on financial transactions, in particular global, is utopia like the search for Atlantis. Administration costs, global market discrepancies and complex nature and interconnectedness of the modern financial industry must be considered. Moreover, the implementation of the solution heavily depends on the tight coordination between parties. Who will collect the tax? What translations will be taxed? How the collected money will be used? The money will be eaten up or forwarded to the special purpose fund? If tax is implemented in one region, it can create additional obstacles to its capital flows. Taking into account the newness of the solution to the market and its current state, will it facilitate capital flows between market participants, or safe havens will be used instead? The implementation of the special purpose fund, which will receive premiums from financial institutions must be considered instead. All of statements that banks will heavily rely on the ensured bailout are verbal bubbles. We will always have to bail out banks either by pumping money in or spinning them off. When a fiscal pipe crashes, it must be repaired or replaced. When a bank crashes, it must be either bailed out or its remnants must be picked up. Whose money will be used to do that? The special purpose fund can be used to smooth the reparation process of the fiscal pipeline by picking up the remnants, to provide temporary roundabout way. The combination of the special purpose fund with the clear strategy of funds employment, the fiscal system repair and turnaround strategy, and of the preventive measures to secure the proper behavior – that is what we really have to think about. Such an approach can help to establish the self-recovery system, to a certain extent, which will be financed by financial market participants. The system must not create hurdles to capital flows. It must smooth them by removing imbalances and steep turns and it must provide the relevant control, monitoring and emergency facilities. Will global financial taxation provide us with such emergency facilities?