I just read an interesting and rather alarming article today. It’s about how the British government is considering imposing a tax on currency trading.
Gordon Brown, the British Prime Minister has been approached by several aid groups who demand a new tax of Forex trading to help supplement their waning funds for aid in developing countries.
A large part of the contributions these aid groups receive has been cut due to the global recession and now they want Forex traders to foot the bill.
The proposed tax is 0.005% which is predicted to bring in around 30-50 billion US Dollars each year to help finance health care development projects in developing countries.
The British Government has said that it is looking into several options to help raise money for these worthy causes and that the proposed tax on currency trading is just one of these options. As this is a global market, it will require a global tax to be truly effective.
What do you think? Is a Forex tax looming or is this mere speculation?
Would you, as a trader, be willing to pay such a tax? Post a comment and let me know what you think.
