The IMF wants two separate taxes on banks to address the huge burden of support after the 2008 financial crash
Times Online, 20 April 2010
The IMF is proposing a double-tax regime for banks that would fund future bailouts and penalise both the profits and pay of lenders.
The proposal emerged in a leaked confidential document prepared for the G20 meeting of finance ministers to be held this week in Washington.
The IMF wants two separate taxes on banks to address the huge burden of support after the 2008 financial crash.
According to the fund, unrecovered costs of bank rescues in the most affected G20 countries represent 4 per cent to 5 per cent of GDP.
The first tax, a Financial Stability Contribution, would be a levy to fund any future government support. The second would be a Financial Activities Tax on the sum of the profits and remuneration of financial institutions.
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