Think tank warns tax would be 'economic suicide'

Influential UK think tank The Adam Smith Institute has added its voice to concerns over European proposals to introduce a financial transaction tax

Thursday 18 August 2011 at 07:00

Influential UK think tank The Adam Smith Institute has added its voice to concerns over European proposals to introduce a financial transaction tax, warning this morning that any such levy in the UK would amount to "economic suicide".

The think tank said in a report that any move by the UK to impose a national Tobin Tax would cause a significant decline in stock trading turnover and prices, prompt a mass migration of trading activity abroad, and result in financial sector job losses.