The proposed EU Financial Transactions Tax is both illogical and likely to be economically damaging

In 2011, the European Commission proposed a Financial Transactions Tax (FTT) to raise revenue from the financial sectors in EU countries following the financial crisis. To date, however, only 11 EU states have so far agreed to implement such a tax. John Grahl and Photis Lysandrou write that while they broadly agree with the objectives behind the FTT, the approach adopted toward the financial sector is simplistic. By applying an indiscriminate tax to all forms of trading, the FTT could create serious unintended consequences and fail to meet its intended goals.