On Tuesday, the International Monetary Fund (IMF) issued a report to G-20 governments proposing new taxes on banks in order to fund future bailouts, echoing initiatives proposed in the U.S., the U.K. and the E.U. Two taxes are proposed: first, a “Financial Stability Contribution” (FSC), designated to pay for the cost of any future government support, that would initially be at a flat rate for all institutions and refined over time to reflect individual institutions’ riskiness to the financial system; and, second, a “Financial Activities Tax” on the profits and pay of financial institutions. The proposal argues that the taxes should apply to all financial institutions and not just banks, because "singling out a narrow group of institutions to be part of the resolution scheme could worsen moral hazard by suggesting that they are less likely to fail than those outside the scheme." The paper explains that "The FSC would ensure that the industry helps meet the costs of any potential resolution and would reduce systemic risk."