The second levy, called the "financial activities tax", or FAT, is on the profits and remuneration of banks and this money can be paid into general revenue, meaning that it is not geared for insurance but to deter risk-taking behaviour where banks trade on the implicit guarantee that they are too important to fail, and take home large pay packets while taxpayers pick up their losses.
The delay in onset and painlessness of renal disease make recognition and modification difficult but should not deter risk awareness and prudent follow-up.
That puts a lot of pressure on people to take whatever job is available, discourages them from investing more in education, and, as a recent study by the Consumer Financial Protection Bureau suggested, may deter risk-taking and innovation.
However, such utter dominance is usually accompanied by several common handicaps: management incentives deter risk-taking; organizational priorities are on preserving harmony and consensus, which result in compromises and half-measures -- a recipe for flawed products; an overwhelming focus on not perturbing the core business means incremental innovation.
In sum, the Dutch model demonstrates that robust risk equalization may largely deter risk-selection.
Deaths have increased exponentially, but have failed to deter others risking the same fate.
If, though, taxpayers must pick up the bill if their losses exceed that of the new self-insurance fund, then surely a "claw-back" provision to make bankers return pay for deals that have gone bad later would be better suited to deter excessive risk-taking.
At the end of the day what we need are mechanisms to deter excessive risk-taking at the expense of the taxpayer.
In 2013, it was the Cincinnati Police Department attempting to deter at-risk youth from entering a life of violence by claiming that doing so could result in them having an ostomy.
Australia has struggled for years to construct a framework to deter asylum seekers risking their lives in this manner.
"We take into account what John has proposed, what John has offered, but we do so very thoughtfully, recognising that the one thing we must not do is give an inch to the people smugglers," he said, citing the need to deter people from risking dangerous boat journeys to Australia".
