The Main Problems Related to the Financial Transaction Tax: The Case of an Extraterritorial Effect and the Coverage of Pension Funds

Abstract

It is globally accepted that the financial sector caused the financial crisis of 2008. As a result, it was internationally agreed that it should pay a fair share to the public finances. The Financial Transaction Tax is an European model of ‘the financial sector paying a fair share'. However, the Financial Transaction Tax is a new tax proposed by the European Commission which - at the time of this article - still remains at the stage of discussion. Therefore, the author of this article discusses the main problems which might hinder the further introduction and functioning of the tax, explaining the reasons which might have caused such problems and drawing the attention how these problems are dealt with in the context of current debates of the tax.