Taxing Financial Transactions: Issues and Evidence
IMF Working Papers, March 1, 2011
Source details
- Canonical URL
- Taxing Financial Transactions: Issues and Evidence
Other formats
Bibliographic details
- Authors: Thornton Matheson
- Published: March 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455220984.001
Summary
- In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of (1) raising revenue for a variety of possible purposes and/or (2) helping to curb financial market excesses.
- The paper reviews existing theory and evidence on:
- the efficacy of an FTT in fulfilling those tasks,
- its potential impact,
- key issues to be faced in designing taxes of this kind.
Main themes and findings
- Purpose of FTTs:
- Raise revenue for a variety of possible purposes.
- Curb financial market excesses.
- Scope of the review:
- Existing theory on FTTs.
- Empirical evidence on FTT effectiveness.
- Potential impacts of FTT implementation.
- Design issues and challenges for FTTs.
Design issues and policy considerations
- Key issues to be faced in designing taxes of this kind (as emphasized by the review):
- Determining the appropriate tax base and rates to meet revenue and/or market-stabilizing objectives.
- Anticipating and addressing potential market responses and avoidance behaviors.
- Evaluating trade-offs between revenue generation and impacts on market liquidity and cost of capital.
Citation example provided on the page
- Thornton Matheson. "Taxing Financial Transactions: Issues and Evidence", IMF Working Papers 2011, 054 (2011), accessed 9/18/2026, https://doi.org/10.5089/9781455220984.001
Disclaimer (as presented in the source)
- This Working Paper should not be reported as representing the views of the IMF.
- The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
- Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Source: Taxing Financial Transactions: Issues and Evidence — https://www.imf.org/en/publications/wp/issues/2016/12/31/taxing-financial-transactions-issues-and-evidence-24702