Financial Transaction Taxes Dissertation Example | Topics and Well Written Essays - 2500 words

Financial Transaction Taxes - Dissertation Example Research report by Economic & Financial Policies Directorate, Ministry for EU Affairs, Turkey (Economic & Financial Policies Directorate, July 2012. FinansalIslem Vergilerive Avrupa BirligiUygulamas?. Ankara, Turkey) Useful information about taxation. Statistical references to specific issues. Research report by Ernst & Young LLP (Tax Policy Services, April 2012. Financial Transaction Tax, Which way now? London, United Kingdom) Useful for the understanding the current situation of the holistic structure of financial taxes in EU. http://www.gib.gov.tr (2012) This website was searched throughout to gain a deeper understanding of Turkish Tax System II - INTRODUCTION A financial transaction tax (FTT) is a tax placed on a specific type of financial transaction for a specific purpose. This term is most commonly associated with the financial sector. (HM Revenue & Customs, 2001)By any name, financial transaction tax is a fee paid any time by an individual or a company buys or sells a share o f stock, any type of security, a futures contract, an options contract, or any of the commonly traded financial instruments. In recent times, the term FTT has been used to refer to the proposed bill â€Å"Let Financial Market Pay for the Restoration of Real Market Bill†. ... In this project, types of FTT researched will give information about implemented and proposed FTTs including country samples and political support with evaluation. III - HISTORY OF FINANCIAL TRANSACTION TAXES As it is known from the history of economics, financial implementations and investigations are always started in countries which see their future earlier than their economy go into the crash. In 1694, an early implementation of a financial transaction tax in the form of a  stamp duty  at the  London Stock Exchange. The tax was payable by the buyer of shares for the official stamp on the legal document needed to formalize the purchase. As of 2011, it is the oldest tax still in existence in Great Britain (Kincaid, 2009).   In 1936, in the wake of the  Great Depression,  John Maynard Keynes  advocated the wider use of financial transaction taxes (Wishart, 2012). Essentially, first tax proposal for the financial sector was put forward by Keynes. He assimilated markets that are dominated by speculation to ‘casino’. He asserted that long-term stability could be provided by taxation on security transactions. Keynes indicated that taxation on security transactions would decrease speculation and provide an effective distribution of resources in the market with ‘right’ price level. In 1972, the  Bretton Woods system  for stabilizing currencies effectively came to an end. In that context, James Tobin, influenced by the work of Keynes, suggested his more specific  currency transaction tax  for stabilizing currencies on a larger global scale (Tobin, 1993) In 1989, Edgar Feige generalized the ideas of Keynes and Tobin by proposing a small flat rate tax on all transactions (Wishart, 2012). In December 1994,  the economic crisis in Mexico  and 1997 Asia Crisis