So what is Financial Transaction Tax?
In 1972 , the American economist, James Tobin, suggested that a tax should be imposed on financial transactions including buying and selling stocks (goods) or contracts (bonds) between individuals and/or businesses.
Benefits and risks on the global economy?
The increasing availability of revenue opens up doors of opportunities for development within the global economy. It also maintains the government’s position behind the steering wheel when it comes to controlling inflation rates and the speculative flow of money.
On the other hand, imposing such fines will result in an unstable economy as the domestic currencies fluctuate with the population migrating to countries that do not impose this tax.
Relevance to THIMUN Qatar
Delegates representing countries from across the Globe will be representing their stance on the question of Global Financial Tax. Resolutions were written on the first day of the conference and debates have begun ever since so as to resolve this proposal.
By Shahd El Shafei
Photo By Aya El Husseini