For a few days we have been continuously bombarded by the media with the imminent introduction of the Tobin Tax. Normally the focus of the news is a tax that comes to record the rich (those who make transfers) to give it to the poor ... hence some call it Robin Hood Tax; but the reality is very different. So much so that if it is not managed well it is very possible that this rate do a disservice to Spain's economy and in the interest of their companies.
A bad idea if applied locally
The most negative point about this rate is that it is easily avoidable if not applied worldwide. As is being discussed, the countries that are going to implement the rate are 11 countries, including Spain, Germany, France and Italy, but England is not found. If we take into account that London is the second largest stock market in the world and that they will not apply the rate, it is obvious that a flight of investors to the United Kingdom with the aim of escaping from the Tobin tax. Or in other words, the only thing Spain is going to achieve is to make the situation of our investment industry worse.
In the end the citizens will pay
Initially, the main objective of the rate is the banks that carry out the large financial transfers ... but does anyone really think that the Banks are not going to pass this cost on to the end customers? Obviously they are going to do it for what in the end the usual ones will pay, ordinary citizens. It is still ironic that let's be rescuing the banks at the same time that we impose a new tax against them ...
Populist action
The economists who work for the different governments are very clear that the rate will not have a real effect but they are still crazy to apply it. The reason is purely electoral, since they know that it is a rate that will be seen by the people as a positive action in the fight against the rich. There are many more effective policies that you could carry out…. but that DOES NOT win votes and is not a priority.
It only remains to hope that someone has some sanity in this matter and finally the Tobin tax does not see the light. But surely in London and New York they will celebrate it in style.