EU taxation not a problem

We are constantly astonished by the number of people in general, and the experts, professors, social campaigners, journalists and the rest of this priesthood in particular, who are blind to simple reality. A financial transaction tax is a classic example of the height of ignorance. When a transaction is taxed, less transactions of that class will take place as a direct result. And the capital will be moved immediately into another class that is yet to be taxed. Nothing important will happen due to the policy. It would be hilarious if it was not tragic.

The experts keep on doing this, over and over again. They work on the principle that, “it didn’t work last time, let’s it again”. Why do these people persist in ignoring reality? The effect of a tax is to discourage the thing being taxed. This is a natural law which cannot be escaped. The worst examples of all are sales taxes and income taxes – which discourage trade and employment. And incentivise welfare and unemployment. The only thing the Financial Transactions Tax will do is to further encourage people to retreat into property and drive up prices still further. Predictions have been made about huge sums of money that will be raised by this tax, but they will not, because the tax will change people’s behaviour. For full article see Melt Fund.