The Robin Hood Tax

The campaign for a Robin Hood Tax on the financial sector hopes to "turn a crisis for the banks into an opportunity for the world." The organisers of the campaign believe the introduction of a tax on banking transactions will raise billions to fight global poverty and tackle climate change.




FROM TOBIN TO ROBIN

The idea of a banking levy was initially suggested in the 1970s by American economist James Tobin, but has long been thought untenable. Gordon Brown Gordon Brown, Angela Merkel and Nicolas Sarkozy have all recently called for the introduction of some form of transaction tax.

In light of public anger over news of the return of bonus payments in the city, a coalition of more than 60 charities, church groups and unions have got together to start a campaign for the introduction of a tax on speculative banking. What was called the Tobin Tax has now become The Robin Hood Tax. The coalition argues that a tax of just 0.05 % could generate billions. Opponents say costs would be passed on to customers. The campaign has been backed by the likes of financier George Soros and Sir Philip Hampton, the chairman of Royal Bank of Scotland.

Richard Curtis directed the promotional video featuring Bill Nighy as an uncomfortable looking banking executive being questioned about the possibility of financial institutions making a contribution to society.

WHAT EXPERTS SAY

Joseph Stiglitz, professor of economics at Columbia University: "There's a growing consensus it can be implemented, if not perfectly, effectively enough to make a difference."

David Kern, chief economist at the British Chambers of Commerce: "It may have potential. I'm not sure it's the most appropriate thing. I think the main argument against it is that it's most unlikely to be implemented globally."

Dominique Strauss-Kahn, head of the IMF: "a very old idea that is not really possible today."

HAVE YOUR SAY

On the website you can sign up to join the merry band of men and women who support the campaign or you can register your disapproval by voting 'no' to the question of whether you think it is a good idea. The site provides you with all the information you will need to help you get involved in the campaign and even offers a Robin Hood Tax mask for download.

11 February 2010