Estimation of the income from the Tax on Financial Transactions: the spanish case

Abstract:

Ten States of the EU are planning to establish a general and harmonized tax on financial transactions (FTT). This paper offers an estimate of the annual expected gross revenue from this tax, in its current design, for the Spanish economy. This estimate is 0.66% of GDP, a figure significantly higher than the suggested by the European Commission. Moreover, the paper suggests a deep impact of the tax on the activity of money markets and on trading. The methodology used to calculate the negative impact of the FTT on the tax base is novel, and takes into account for each financial instrument a number of aspects related with the microstructure of its market.

Año de publicación:

2015

Keywords:

Fuente:

google