IMF s bank tax proposals a licence for governments to raise taxes

Philip Booth suggests a better plan

Responding to the IMF’s plans for new bank taxes, Professor Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, said:

“The IMF’s bank tax proposals spell trouble for UK consumers. The cost of these taxes will inevitably be passed on. The low cost of banking is undoubtedly a great British success story; these taxes will be a substantial backward step as the cost of the taxes will be passed on to consumers.”

“It is appalling that all three main parties have come out in support of the taxes. This money will not even go into a fund to deal with any future banking problems. It will be channelled into general government coffers and used for completely unrelated policies, for example the Conservatives’ marriage tax break.”

“The extension of these tax schemes to insurance companies and hedge funds shows intent t