On the current debate regarding the financial transaction tax
Kim, J., Yoo, S. S.
Type of Research
Peer-Reviewed Journal Articles
2014, Before July
Discipline-based scholarship (basic research)
Corporate Finance Review
Currently, the European Union member states are engaged in a heated debate on coordinating their efforts toward implementing financial transaction taxes (FTTs). This paper compares the current status of FTTs in 23 nations and regions, reviews previous studies on the FTT or Tobin tax, and discusses various issues related to it. The authors believe that the FTT is likely to increase transaction costs and decrease liquidity in the market, resulting in an increase in the cost of capital.