Captura de ecrã 2016-06-14, às 15.34.25

The Overselling of Financial Transaction Taxes by Kenneth Rogoff – Project Syndicate

“The fundamental problem with FTTs is that they are distortionary; for example, by driving down stock prices, they make raising capital more expensive for firms. In the long run, this lowers labor productivity and wage levels. True, all taxes are distorting, and the government has to raise money somehow. Yet economists view FTTs as particularly troublesome because they distort intermediate activity, which amplifies their effects.”