Mar. 27 - Reuters Breakingviews Editor Hugo Dixon has one loop of Canary Wharf in a taxi to argue his case for an alternative bank tax.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- As you go we've got eurozone finance ministers meeting on Friday it's a great opportunity. Talk about how to tax the banks once and parole you've got three minutes and I think we need to get off now threaten us tonight. How to do. Okay a little bit get that opportunity has presented by the fact that the so -- -- includes tax reaches the financial transactions tax. Looks like kids. -- -- -- And say now we can look at it several times it's kind of like that Robin Hood tax okay run us through those -- and what -- -- on the table well. Thrusts one is -- money tax. This is designed to make banks rely less able to hold money deeply Schultz Tom wholesale money. We have attacks like that in the UK. The -- and about I think eleven of the European Union countries had it but it should be something across the bulls are what -- -- during the interview digital universe yeah universal I think he -- doesn't do decided they didn't do it that group to decide it was always -- advice to US Obama called -- a -- receivables. Financial responsibility Betty. And and it dropped but yeah she put it back. On the gender in September off to the presidential elections. Does it solves that's -- -- to -- -- shrink that deficit and may I eat something on the order of the way around your guy what's next. Second thing is what they need to do is they need to get away that tax bias in favor of debts in most countries around the world. Interest payments on debt off tax deductible that gives companies. And sends it to lift themselves up you are trying to work out a way to make less than six about it and we can get. -- really is it's but but if you incentivize people to take all of instead antenna. Be irresponsible and I don't just the companies and banks and this is one of the -- reasons that we really need to get rid of this and then finally. The final audience that's what it sexy name. And when it is -- like BA all went down here. Say yeah I did today is that you this is actually belittled in fact. Is that banks and financial services are exempt from value added tax. In Europe and pretty much ever or our on the wild and so what that does disposals of distortions one of the things that means -- the banks probably. Bomb attacks but it Obama be only that it means that certain activities. Come businesses actually probably as attacks consumers help the tax. I'm banks and in general did an -- what you need is in its avenues such attacks. Which is why they -- via AT all eaten the banks. Or you put what is called the financial activities tax which which comes with the multiple Akron NF eight. See all all right back. Fast fact not let me everywhere coming up to that the we've just -- Green gentle corner ahead -- and -- strike this is about raising money yours is about changing behavior it's. About two things the -- -- the problem -- money tax. Is about changing that banks -- get -- say that they rely less on -- money easy come easy go money which makes more vulnerable same this thing about removing the the bias. Against -- it's -- of debt that's about that will then reduce the amount of leverage in the system. And again -- about a -- the fat tax is basically about raising money. All right take on some sort of generic I take my kind of achieved an advantage of them and some people think. Thank you very much I'm not I'm Jason founder of -- breaking news -- troubled. -- about it rises.