Global Tax System--Needed or Not

Global Tax System--Needed or Not

    Germany's finance minister, Peer Steinbrueck, "has called for a global tax to be imposed on financial transactions in a bid to end" that which his administration is calling "binge-drinking" in the financial markets.

"The cost of the crisis should not be borne alone by small taxpayers," Steinbrueck has stated in the SÃ ¼ddeutsche Zeitung newspaper.

The Financial Times says, "One person close to Mr Steinbrà ¼ck said under the proposal, a 0.005 per cent tax would be paid on all financial transactions by banks, insurance companies and investment funds."

Chancellor Merkel doesn't think it will go anywhere in the next G-20 Summit, but other worldwide observers expect that within the next decade there will be a global tax like this too keep banks from taking their gains abroad and not paying taxes anywhere on them.

What do you think? Is a global tax needed for financial institutions?

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