G20: US Geithner: Against Global Transaction Tax Idea
ST. Andrews, Scotland -(Dow Jones)- U.S. Treasury Secretary Timothy Geithner
is against an idea floated over the weekend by U.K. Prime Minister Gordon Brown
that would impose a global tax on financial transactions.
"That's not something we're prepared to support," Geithner said, speaking
after meetings of Group of 20 finance ministers and central bank governors in
Scotland Saturday.
He added that it is an idea that has been around a long time and has received
mixed results.
Geithner said he and Brown had a lengthy discussion on the matter. Brown
pitched the idea to the world in a speech Saturday.
Despite conflicting views on how to do it, however, Geithner said global
economic leaders agree that taxpayers shouldn't have to pay for any future
losses the financial sector may experience.
"We agree that we have to build a system in which taxpayers are not exposed to
the risk of losses in the future, where institutions and investors don't live
with the expectation that governments are going to come in and save them from
their mistakes in the future," he said.
Geithner continued to promote the U.S. way of ensuring taxpayers aren't on the
hook for future losses suffered in the financial system. The U.S. is proposing
firms pay a fee that would go into a fund to be used for future resolution
costs, should the need arise.
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-9255;
meena.thiruvengadam@dowjones.com
(END) Dow Jones Newswires
11-07-091404ET
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