The 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.
>>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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With the opening of the G20 Summit in Cannes, France today, an idea that's been around for awhile is in the news again and gaining more attention as a result of the #OWS movement: The so-called "Robin Hood tax," a minimal tax on all financial transactions with the resulting revenue dedicated to anti-poverty programs....Archbishop of Canterbury Rowan Williams, in his response to the occupation of St. Paul's Cathedral in London, endorsed the Vatican proposals. Williams observed that "people are frustrated beyond measure at what they see as the disastrous effects of global capitalism," and urged a full debate on "a Financial Transaction Tax
In the face of state and federal budget cuts, many of us have been fasting and contemplating the question: "What would Jesus cut?" In light of tax day, however, we might equally contemplate: "What would Jesus tax?"
After all, a great deal of our budgetary stress is the result of declining revenue, thanks to the economic downturn and decades of tax cuts.
A new report that I co-authored, "Unnecessary Austerity," argues that before we make draconian budget cuts at the federal and state level, we should reverse huge tax cuts for the wealthy and tax dodging corporations.
The Jesus I know would be concerned about the extreme inequalities of wealth and power that have emerged in our communities. He would rail against principalities and powers that rig the tax rules so the privileged pay less.
He would lament the destruction of God's creation through excessive consumption and pollution. And, he would be alarmed about financial and commodity speculation driving up the cost of food and worsening hunger. (In today's world of high finance, someone would be hedging investments on how quickly Jesus could multiply loaves and fishes.)