Scotland's First Minister Backs the Robin Hood Tax
Oxfam Scotland welcomes Alex Salmond’s public support for the Robin Hood Tax.
The First Minister used a radio phone-in today (Monday) to back a Financial Transaction Tax with the money spent on tackling poverty at home and abroad, and climate change.
During Radio Scotland’s Call Kay programme, Mr Salmond backed an international Robin Hood Tax – branding it: “such an attractive idea”.
He added: “I would speak up in favour of the concept”.
The First Minister questioned why the UK Government isn’t actively promoting the measure – which he says could raise “a huge amount of money” to tackle poverty and climate change.
Judith Robertson, head of Oxfam Scotland, said: “It’s great news that the First Minister is advocating the Robin Hood Tax.
“We’ve seen other European countries voicing similar support and they are now actively working towards the implementation of a Robin Hood Tax at the European level.
“More and more people believe Europe could lead the way and show that while a global tax would be ideal – like-minded countries can come together to adopt the Robin Hood Tax now.
“Within this context, Mr Salmond is right to call on the UK Government to champion it.
“He has added his voice to the growing number of international supporters of this tax and, by doing so, the First Minister is echoing the voices of ordinary Scots.
“A poll for Oxfam showed that 62% of Scots support the tax. The reason is simple: the Robin Hood Tax is about fairness.”
Mr Salmond’s intervention comes a day after Cardinal Keith O’Brien, Scotland’s most senior Catholic, called on the Prime Minister David Cameron to back the tax.
Mr Salmond has joined the growing list of political, business and civic leaders who support the measure including: the billionaire businessman Bill Gates, French President Nicolas Sarkozy, German Chancellor Angela Merkel and the investor Warren Buffett.
Alex Salmond joins Caryn Jones, the Welsh First Minister, who called for the tax in February.
Comments
#1 The problem with taxing
The problem with taxing corporations, banks, etc (robin-hood taxes) is that the bodies that are being taxed will, inevitably, pass on the cost of that tax to the consumer. As is usually the case, the people that will pay is you and me and the profiteers at the top will carry on doing their thing regardless.. I don't really see how a robin hood tax will change this...
#2 If the banks aren't the ones
If the banks aren't the ones who will be paying the tax, it is odd that they have been lobbying so hard against it.
Financial Transaction Taxes (FTTs) are specifically aimed at casino-style trading, and the customer-base of hedge funds and investment banks is comprised primarily of high net worth individuals, and not ordinary people. Hedge funds, investment banking divisions of large banks, and dedicated investment banks dominate this market, and so taxes on an FTT would fall primarily on these companies and corporations.
As FTTs are targeted at casino banking operations, they can easily be designed in a way that protects the investments of ordinary people and businesses. Like other taxes, specific exemptions and punitive measures can be built in to protect e.g. lending to businesses or exchanging holiday money.
The IMF has studied who will end up paying transaction taxes, and has concluded that they would in all likelihood be ‘highly progressive’. This means they would fall on the richest institutions and individuals in society, in a similar way to capital gains tax. This is in complete contrast to VAT, which falls disproportionately on the poorest people.
#3 Robin Hood tax
For me, the great attraction of the RH Tax is that it will act as dampner on high volume, low margin currency and derivative bargains - usually driven by computer, and having no beneficial effect on the economy whatsoever. The money it collects in is just a bonus!
#4 Robin Hood tax
"Correction:
Alex Salmond joins Caryn Jones, the Welsh First Minister who called for the tax in February.
should read:
Alex Salmond joins Carwyn Jones, the Welsh First Minister, who called for the tax in February.
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