He added: “It is a question of fairness. If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society, also the banking sector should make a contribution to the society.”
Oh, right. Hadn’t thought about it like that before.
Umm, farmers pay tax upon their profits, workers on their wages. Banks pay tax upon their profits, bankers upon their wages.
So, the justification for a special extra tax on the banking sector is the same as the justification for that extra, special, tax upon every transaction in food and every pay cheque in the continent then, is it?
You know, those two taxes that don’t exist?
BTW, as to the actual effects of this tax, assume that they go ahead and introduce it in the eurozone and not in London (Barroso has threatened the first and Osborne insisted on the second). Go short Frankfurt property and long London basically. What will happen to the European derivatives markets will be what happened to international $ bond financing in the 60s. It’ll all move to London.
As far as The City is concnerned this is a real Br’er Rabbitt moment. Oh, no, please don’t introduce this tax only in the eurozone, oh, no, please don’t!