Robin Hood Tax to the rescue?
Robin Hood Tax to the rescue?We examine if a tax on financial transactions can be effective.
Could a financial transactions tax on Wall Street save Main Street? Advocates say enforcing a Robin Hood tax, or a small levy of between 0.5 and 0.005 per cent on financial transactions, may generate more than $35 billion in revenue each year in the US, which, they claim, could help solve the financial crisis and curb market volatility.
Critics say the so-called Robin Hood tax would simply move trading offshore and hurt small investors more than the high-frequency traders the tax intends to target.
In this episode of The Stream, we discuss the pros and cons of the Robin Hood tax and the chances of its passing with James Angel (@gufinprof), professor of finance at Georgetown University, and Stephany Griffith-Jones, economist and financial markets director at Columbia University.
What do you think? Could the Robin Hood tax effectively regulate Wall Street and help Main Street? Send us your thoughts and comments on Facebook or Twitter using #AJStream.