It would first go to paying down the costs of the previous dozen-odd bailouts, the costs of which have amounted to a subsidy from taxpayers to market participants.
We are a long long way to break even on history, once that bill has been paid, then we can worry about a "lock box" for the future.
The European Commission’s estimation that a financial transactions tax (known as a Tobin Tax) would raise €37bn (£30.5bn) is “based on overly optimistic assumptions,” Ernst & Young says today.
The Commission has acknowledged that it did not address the impact of lower GDP on revenue collection from other taxes,” states economic adviser Marie Diron. “Even when modelled against the best case scenario this incurs a €39bn loss, making the net impact on overall tax revenues a loss of €2bn.
Using the Commission’s worst case scenario, involving a 1.76 per cent hit to GDP, the tax could result in a net loss to public finances of €116bn.
Besides being very active on the FTT thread, I've been commenting in WSJ and FT on every NYSE Deutsche bourse merger article.
I've said it's crazy for NYSE to merge with the German exchange as Germany is hostile to banking, finance and exchanges. Germany will try to use the merger to spread their FTT beyond the euro zone and also over regulate all instruments including derivatives.
This merger is like if Ford wanted to merge with Mercedes just before WWII. The exchanges are too focused on savings, reduced competition, diversification, global reach and bigness. When it comes to Germany and France, run for the rafters, they are falling to socialist forces and have the pitchforks out for banking.