What Are Three Rock Solid Proven Benefits of the Robin Hood Tax?
Three Benefits of the Robin Hood Tax
Although every Robin Hood Tax has its own specific intended purpose, there are some general intended purposes which are common to most of them. Below are some of those general commonalities. The intended purpose may or may not be achieved.
Curbing volatility of financial markets
In 1936, when Keynes first proposed a financial transaction tax, he wrote, "Speculators may do no harm as bubbles on a steady stream of enterprise. But the situation is serious when enterprise becomes the bubble on a whirlpool of speculation." Rescuing enterprise from becoming "the bubble on a whirlpool of speculation" was also an intended purpose of the Robin Hood Tax and is a common theme in several other types of financial transaction taxes.
More fair and equitable tax collection
Another common theme is the proposed intention to create a system of more fair and equitable tax collection. An Automated Payment Robin Hood tax taxes the broadest possible tax base, namely all transactions including all financial asset transactions. Instead of introducing progressivity through the tax rate structure, the flat rate introduces progressiveness through the tax base since the highest income and wealth groups undertake a disproportionate share of financial transactions.
According to several leading figures, the "fairness" aspect of a financial transaction tax has eclipsed, and/or replaced, "prevention of volatility" as the most important purpose for the tax. Fraser Reilly-King of Halifax Initiative is one such economist: he sees a Robin Hood Tax as important for bringing a more equitable balance to the taxation of all parts of the economy.[
Less susceptible to tax evasion than alternatives
According to some economists, a financial transaction tax is less susceptible to tax avoidance and tax evasion than other types of taxes proposed for the financial sector. An Automated Payment Robin Hood Tax employs 21st century technology for automatically assessing and collecting taxes when transactions are settled through the electronic technology of the banking payments system.
The Robin Hood Tax on Wall Street can be a game changer start towards a fairer, more democratic, more humane, more balanced, and more moral American Tax System.
This tiny sales tax on Wall Street is:
.5% on stocks, just $.50 (50 cents) for each $100 of stock trades;
.1% on bonds, just $.10 (ten cents) for each $100 of bond trades;
.005% on derivative speculation in currencies, commodities, or other trades, just $.005 (half a penny) for each $100 of trades
The revenue generated is estimated by economists to be up to 350 billion each year!
The Robin Hood Tax can be a game changer for a fairer, more democratic, more humane, more balanced, and more moral American Tax System.
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