| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Three cheers for those 'magnificent' students......... | |
| Posted by: | Stewart Dean | |
| Date/Time: | 14/11/10 12:14:00 |
| I kinda get what you're saying Will - where does the money come from? I comes from those doing the transactions on the riskier side of the financial system mostly, although not exclusively. It's money that is in the system already to some degree in the forms of shares, investments and other financial instruments. For small to medium business this tax is not going to touch them, which is a good thing. Increase corporation tax and it would. And yes it would put a levy on transactions regardless of if it's for profit or not, it's he movement of money that is taxed. So if a company makes sound long term investments they would not be affected and they would remain unpunished. The people who would be the most 'punished' are those that make many transactions over the course of a day, such as those that trade based upon computer algorithms. Just as well as those people reduce the stability of the economic system. This tax would only affect stocks, bonds, foreign currency and derivatives. It largely affects the things traded in order to make money, not the transactions a business needs to do to make money (leaving the stock issue for another discussion for now). If it affected business transitions, like bill payments etc then it would be an issue and it would be the same as corporation tax. As it stands it affects some of the more 'creative' sides of how large organisations are run. So where does the money come from? It comes from the money sloshing around in the system and from the profits of many different companies and individuals who play the market. |