This information was retrieved from http://robinhoodtax.ca/howitworks.
What is a financial transaction tax and why is it important?
– It is a very small tax (0.05%).
– It would be levied on all financial market transactions.
– Financial transactions traded through stock exchanges (stocks, bonds, foreign exchange, and derivatives).
– Ordinary consumer transactions such as payments for goods, paychecks and cross-border remittances would not be subject to the Robin Hood Tax.
– Tax of 0.05% could yield around $650 bn a year.
– Supporters: France, Germany, the United Kingdom, Japan, Austria, and Belgium, Former Governor of the Reserve Bank of India, The EU parliament and European Commission have spoken out in favour.
– Over 350 academics and economists, including Joseph Stiglitz, Paul Krugman, Dani Rodrik, Jeffrey Sachs, and Paul Volcker, former US Federal reserve Chair, support the idea.
– Current government is showing no leadership on the issue. Stephen Harper and Jim Flaherty have both as yet rejected the idea of the tax.
Once again what the Robin Hood Tax (financial transaction tax) plans to do:
- Raise billions of dollars for fighting poverty and climate change at home and abroad.
- Make sure banks and the financial sector pay their fair share of the economic recovery.
- Help curb destabilizing financial speculation.
I can not find any rationale for our leaders’ decision to reject this attempt to more fairly regulate financial transactions especially with all of the evidence that has come forward from well-known experts to support it. With all the talk of austerity measures from our government you have to wonder why a simple idea such as this is hardly getting any attention from policy-makers. Many other countries plan to implement this tax and yet we pay it no heed. Instead our government chooses to cut essential social services to find the money. This stems from a long-line of conventional economic wisdom similar to our extremely low corporate tax which is supposed to increase investment. These practices have been proven to fail time and time again and yet we persist in using them.
Because we have absolutely no way of holding our decision makers accountable on matters such as these. I think that the decision to implement this tax should rest with the public after they have been informed of the pros and cons in the least biased method possible.
However that is just my opinion and I encourage you to post what you think about the Robin Hood Tax in Canada down in the comments section. All opinions are welcome as I’d like to foster a constructive discussion on how best to proceed and your perspective would be much appreciated.