In an interview published on 27 August by the magazine Prospect, Adair Turner, the head of Britain's Financial Services Authority expressed support for an international financial transactions tax, or Tobin tax (named after the economist James Tobin).
The proposed tax, which has previously been championed by development economists and the French government as a means of funding the developing world, has been fiercely opposed by the finance industry.
Lord Turner appears worried about a return to “business as usual” in the banking sector, suggesting that new taxes may be necessary to curb excessive profits and pay in the financial sector. “If you want to stop excessive pay in a swollen financial sector you have to reduce the size of that sector or apply special taxes to its pre-remuneration profit,” he says.
Read full Financial times article here: http://www.ft.com/cms/s/0/08943b5a-926a-11de-b63b-00144feabdc0.html
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