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 Süddeutsche Zeitung newspaper.

The Financial Times says, "One person close to Mr Steinbrück 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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