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British-based campaign says a charge of just 1/20th of 1% on financial transactions not involving the public would raise an estimated £250 billion ($400 billion Cdn) a year.
Ottawa (19 Feb. 2010) - A campaign for a global "Robin Hood Tax" on the banks has taken off in Britain and is fast spreading to other parts of the globe.
The campaign calls on G20 leaders to place a 0.05% (1/20th of 1%) tax on financial transactions, one that campaigners believe could generate £250 billion ($400 billion Cdn) a year.
It would apply to all transactions that do not involve members of the public, such as bonds, derivatives (including options, forwards, futures and swaps), currencies and other speculative financial activities.
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The above video posted on The Robin Hood Tax website explains in just over three minutes what the tax is, how easily banks could absorb it and how ludicrous their opposition is considering how many nations are starving for revenues to finance basic services and programs.
The video shows a banker being interrogated and cornered on the meaning of the tax and what it could accomplish, closing with a question that explains the tax in simple detail and leaves the banker speechless. In the end, he admits that it would be a good idea.
"Gosh," the banker sputters, "Well yeah, ah, that is, ah, about the, um, sum of it. I don't, I don't know, perhaps it's quite a good idea."
"Because of the financial crisis, front line services at home – like the National Health Service (NHS) and our schools – are under fire," the campaign website says. "At the same time, poor communities and the environment are being hit hard – as aid and green budgets are slashed by rich countries. So it’s time for the people who caused this mess to pay to clean it up."
The website says several leading politicians have spoken out in favour of the tax, including British Prime Minister Gordon Brown. German Chancellor Angela Merkel and French President Nicolas Sarkozy. Organizations backing the campaign include the 6.5-million-member Trades Union Congress, Oxfam and Greenpeace.
"Plenty of business bigwigs are on-board too. Like Lord Turner (from the Financial Services Authority), George Soros (the philanthropist) and Warren Buffet (U.S. businessman extraordinaire). And then there are the hundreds of economists who have backed the idea, too. This isn’t some crazy pipe dream. It’s a simple and brilliant idea which transcends party politics and which – with your support – can become a reality."
A tax on currency trading (then known as the Tobin tax) was first suggested by economist James Tobin in the 1970s.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
More information:
Robin Hood Tax Website
Robin Hood Tax YouTube Video