You can't tax an economy to prosperity

“You can't tax an economy into prosperity; likewise you can't tax a financial sector into stability.” These are words by Stephen Harper in addressing the new international bank tax proposal. This proposed global bank tax would enforce banks in many countries of the world to pay a tax that is to help with the Bailouts that are happening around the world in this economic downturn. Many countries who have been beneficiary to the bailouts or think they may need bailouts in the future are for this plan, while Canada is not. Obama has also been backing this as he has been pushing towards the one world governing platform. The Prime Minister, Finance Minister and others from the Canadian Political arms are stepping up to try and stop this from happening. Canada will host extraordinary back-to-back meetings of the G8 and G20 next month in Huntsville, Ont., and Toronto. Harper said he will use his position as host to push the G20 to adopt a more sustainable system of financial regulation as a corrective to the economic meltdown. Canada has so far avoided the bailouts’ toxic assets and are continuing to put measures in place to strengthen Canada’s financial system, so why put more burden on a recovering financial system. We cannot continue to add taxes every time the economy is in trouble. Taxes are already a big cause of the downfall of many societies, on this Fiat system they are built on! Canada is standing up against this possible world tax and at the same time proposing a different solution: Rather than a more formal tax on bank earnings, Canada has championed a plan it calls "embedded contingent capital" as a way of strengthening the financial system and mitigating the need for bank bailouts. Essentially, the system would allow banks to sell bonds to pad their reserves, but the bonds would automatically be converted to equity during bad times, thus avoiding the need for a taxpayer bailout. The system theoretically would encourage bondholders to keep a closer eye on management because they would be unwillingly converted into shareholders if anything goes wrong. Will the Global Tax go through, will Canada’s proposal emerge on world platforms as a serious alternative, or will others come forward with other plans? …Only time will tell!