IMF proposes radical new bank tax

The International Monetary Fund has put forward proposals for two separate new taxes on banks to avoid public money being spent on future bank bailouts.

Under the new proposals, all institutions would pay a financial stability contribution (FSC) - which would initially be levied on a flat rate, but would be adjusted over time to reflect the risk at each institution – as well as a new ‘financial activities tax’ on profits and pay.

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