At best, taxes will eventually be raised and spending cut, with a negative effect on growth; at worst, the outcome may be direct capital levies (default) or indirect ones (inflation).
We must discuss how the South can develop mechanisms to control capital flows by levying taxes on capital that migrates to the North, by imposing quantitative limits on capital flows, and by creating mechanisms that will enable us to keep our reserves in the South so that the interest they generate can provide financing to the South.
Other proposed measures include systemic-risk-based capital surcharges and levies that are related to the contribution of institutions to systemic risk, enhanced on-site supervision, harmonized enforcement activities and strengthened supervisory cooperation and coordination, including supervisory colleges.
The top personal income-tax rate (also levied on capital gains), the sales tax rate, the corporate tax rate, and the gas tax are all at or near the highest of any state.
Such taxes are levied on each capital gain or on the sum of the capital gains accrued during a year, mostly at special rates which do not take into account the other income (or losses) of the taxpayer.
Such taxes are levied on each capital gain or on the sum of the capital gains accrued during a year, mostly at special rates which do not take into account the other income (or losses) of the taxpayer
Direct controls are similar to macroprudential regulations in that they can be price-based, in the form of levies or taxes on capital inflows, or quantity-based, in the form of direct limits.