Ann Cahill has plenty of sensible things to say about the Financial Transaction Tax

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Ann Cahill has plenty of sensible things to say about the Financial Transaction Tax

The fact that the tax will be based on the place that the trade is done means that if a trade happens between London and Dublin, then the tax from both sides will go to Ireland if the UK opts out as they say they will.

However, if Ireland opts out, it will lose the tax to whatever other EU centre is involved in the trade. The only way a trade can avoid the tax is to abandon all its European clients and stop trading in the EU, including on remote access.

Ireland already has a stamp duty, which is similar to that in Britain but double the rate, but only the big institutional traders are covered, such as pension funds. The difference with the FTT is that it would also cover derivatives, trading not on shares related to a company that produces something, but trading on issues related to how the shares perform, such as insurance that pays out if they drop by a certain percentage for instance.

A lucrative form of gambling that the financiers in their letter point out is worth 70 times the size of the real economy. If all the bets were called in, there would not be enough money in the world to pay out.

Worth comparing this to the general ignorance of Dan O’Brien.

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Donagh is the editor of Irish Left Review. Contact Donagh through email: dublinopinionAtgmail.com