A financial transaction tax proposal is a plan which looks to support or reject the application of a tax levied on a particular financial tax transaction for a particular purpose. There different kinds of financial transaction taxes applied on various transactions in different countries. Some opt for gradual implementation while others refuse it as it is not useful according to them. But in today’s economic conditions, it is good way of increasing revenues and countries like the United States is following the European Union’s policy of proposing transaction tax for financial firms.
Sample Financial Transaction Tax Proposal:
Name of proposal: Financial transaction tax proposal
Financial proposal prepared on: November 11, 2011
Proposal prepared by: Gary Thomas, Democrat
Proposal submitted on: November 15, 2011
Purpose: The primary purpose of this proposal is to affirm the need to tax financial firms for all financial transactions and thereby generate more revenues for the country.
Details of Financial Transaction Tax Proposal:
- The financial transaction tax drive will take effect in 2013 and should be able to raise an estimated $50 billion a year.
- The proposal would apply a tax of 0.05% on trade of stocks and bonds
- A press conference will be held declaring the idea to the public and making them aware of the policies followed by countries around the world
- The Bill will be presented in the Senate in the next session.
- A meeting will be held with financial institutions and a middle path will be selected so that all quarters are satisfied.