Brown forced to backtrack on Tobin tax proposals
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Prime Minister Gordon Brown has been forced to backtrack on his proposals for a so-called ‘Tobin tax’ on financial transactions after widespread international criticism of the idea.
In a speech to the G20 finance ministers at St. Andrews on Saturday, Brown called for a “global financial transaction levy” to be forced globally, the proceeds of which would be used to use an international compensation scheme.
But the proposal was roundly criticised. US Treasury Secretary Timothy Geithner told Sky News: “A day-by-day financial transaction tax is not something we’re prepared to support.”
International Monetary Fund managing director Dominique Strauss-Kahn told Reuters: “We’re not working on a Tobin tax at the IMF because such a tax would risk being unworkable.”
According to the Financial Times, the criticism of the Tobin tax has led the Government to backtrack on the plan. An official source told the FT: “We’re not that massively wedded to a transaction tax.” Shadow financial secretary Mark Hoban told the FT this was an “embarrassing” step back for Brown.
Strauss-Kahn told Reuters that the IMF is investigating the possibility of an international insurance scheme, funded by international taxes on financial institutions.
Readers' comments (8)
F-Pack crack team | 9 Nov 2009 12:19 pm
Shows what a pr*tt Mr Boom and Bust is!
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Underpants round the wrong way | 9 Nov 2009 1:02 pm
But he did save the world. I bet he's wondering why the rest of the world just don't appreciate it!I do hope he finds out that a lrage part of the UK don't view him as a saviour at the next general election either.
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Anonymous | 9 Nov 2009 1:45 pm
balderdash
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Michael White CEO Emailmortgages | 9 Nov 2009 2:12 pm
I might suggest he needs to use his good eye next time he peruses a tax proposal of this magnitude!
At least he is backing down quickly, unlike the situation with the FSA who make proposals no less unworkable, but can continue with harmful measures to the mortgage market and ultimately wider economy by using the words 'consultation' or 'discussion'.
It will be very nice indeed to say "cheerio and don't hurry back" at the next election to Brown and some of the other 'public servant' lunatics presently running the asylum.......roll on 2010!!
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Anonymous | 9 Nov 2009 2:14 pm
How much more does this man have to do to trash the UK in the eyes of the world.
Why does he just call a general election he is so out of his depth.
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Tom Evans | 9 Nov 2009 2:16 pm
Its a pity that the rest of the world haven't had the need to comment on the taxation Brown has imposed on the UK taxpayer. It would take all day for me to list it.
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Tom IFA | 9 Nov 2009 3:25 pm
Can't wait until next May. This guy is an embarresment . F- Pack stole my favourite word, sums him up totally.
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Colin | 9 Nov 2009 4:15 pm
tax, tax, tax.....try cutting costs!
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