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“It is time for the financial sector to make a contribution back to society,” - European Commission President José Manuel Barroso.
Strasbourg (29 Sept. 2011) - The nations of the European Union appears closer to the adoption of a Financial Transaction Tax (FTT or commonly called the Robin Hood Tax) as the proposal is being debated by members.
The EU proposal is for a tax of 0.1 per cent on trading of stocks and bonds and a 0.01 per cent rate for derivatives contracts. With a target to start being collected in 2014 it would raise about 57 billion Euros ($78 billion) a year.
Plan sets minimum tax rates for financial transactions in the 27-nation EU according to a statement from the European Commission, the bloc’s Brussels-based executive.
The United Kingdom remains unsupportive of the tax but this may change as fiscal pressures in the Eurozone grow and public opinion in support of the tax increases.
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For an entertaining explanation of the Robin Hood Tax |
Billionaire Bill Gates is among the recent advocates for an FTT. Gates was asked by French President Nicolas Sarkozy to investigate the proposal for the November G20 meeting in France.
“The tax would aim at covering 85 per cent of the transactions that take place between financial institutions,” according to a statement from the EU. In addition the EU wants to exclude households and small businesses from the levy, and says banks could charge “not excessive” fees such as a 10-euro fee on a 10,000-euro stock purchase.
“It is time for the financial sector to make a contribution back to society,” European Commission President José Manuel Barroso told the European Parliament in announcing the proposal in Strasbourg.
James Clancy, National President of the 340,000 members National Union of Public and General Employees (NUPGE) hopes that the Canadian government looks to the European example.
In a letter to the French President "our federal government has not similarly embraced the policy proposal. In fact, they played an obstructionist role in efforts to discuss the FTT at the G8 and G20 meetings in Canada," explains Clancy.
"We want to assure you that the FTT enjoys considerable support in Canada. Most Canadians want to see greater action on global poverty and climate change and look to the G8 and G20 to bring forward innovative funding mechanisms like the FTT. "
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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