The Common Good

Robin Hood Returns to Europe - France Takes Up the Tax

Support for a Financial Transaction Tax is growingThe global movement to implement a small tax on some financial industry trades has gained its first European partner: France. Religious and economic reform groups have been leading the movement to implement versions of what has been called the "Robin Hood Tax" or the "Tobin Tax" since the 1990s. As global markets falter and national economies are brought to their knees by an unregulated financial industry, this financial transaction tax is one small way to impact global reform. 

With the passage of the new French budget, France becomes the first European country to impose a transaction tax on share purchases, including high-frequency trading and credit default swaps. The transaction tax, aimed at curbing market speculation, will be paid on the purchase of French stocks with market values of more than 1 billion euros ($1.2 billion).The bill’s passage into law marks “the first step toward fiscal reform and a move toward justice,” Finance Minister Pierre Moscovici said in a statement.
 
Here's an excerpt:

>>On 1 August, France became the first European country to introduce a new financial-transaction tax (FTT) on equity sales and high-frequency trading.

The FTT, often called a ‘Robin Hood tax', is a tax on selected products traded by the financial sector, such as equities, bonds, foreign exchange and their derivatives. Where those countries where such a tax has been introduced (in South Korea, South Africa, India, Hong Kong, the UK and Brazil), the tax may have been tiny (ranging between 0.005% and 0.5%), but it has raised substantial amounts of revenue. The FTT discourages high-risk financial operations and makes the financial sector pay its fair share of taxes. This is sensible: a reckless casino culture in parts of the financial sector caused the financial crisis. It is also fair: our governments bailed out the banks but left taxpayers with debts of trillions.<<

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