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.

View the story "Robin Hood Tax to the rescue?" on StorifyRobin Hood Tax to the rescue?We examine if a tax on financial transactions can be effective.Storified by The Stream · Thu, Jul 26 2012 09:08:06Protesters wear masks of world leaders at the 2011 G20 Summit in Nice, France.EPAAJstreamThe global financial crisis has left many frustrated with bankers and politicians in power. In this video from Oxfam Germany protesters call for a Robin Hood Tax:
Robin Hood Tax in 84 Seconds (English Subtitles)sinnwerkstattSince 2010, the Occupy Movement has lobbied for a Robin Hood Tax, also known as a Tobin tax or a financial transaction tax (FTT). The tax gleans anywhere from 0.005 to 0.5 percent of large-scale financial transactions.

A version of the tax has gained popularity amid Euro-zone debt negotiations and an endorsement from French president François Hollande.

Message du Président de la République pour la conférence mondiale sur le sida à WashingtonPrésidence de la République In June, Angela Merkel backed Hollande after receiving pressure from opposition parties in the German government. EPAAJstreamThe movement has recently gained renewed traction in the US following celebrity and professional endorsements:Introducing the Robin Hood TaxrobinhoodtaxusaBills that would amend the US tax code are currently sitting in US Senate and House committees. The bills, introduced by Senator Tom Harkin and Rep. Peter DeFazio, would place a 0.03 percent tax on transactions within the US market. GovTrack.usAJstreamHere, Senator Harkin argues for financial reform of Wall Street in 2010:Harkin: Financial Reform Needed to Hold Wall Street Accountable; Help Main StreetsenatortomharkinProponents of the bill argue that the tax will create great revenue gains that can help supplement government austerity measures. Center for Economic Policy and ResearchAJstreamStill, others wonder if taxation will distract from overall measures of Wall Street reform. Strict opponents of the Robin Hood Tax fear it will drive investors from the US to other markets. This concern is echoed worldwide. In 2011, David Cameron argued that the tax could only be adopted on a global basis: Cameron's warning on Robin Hood taxDavid Cameron said there was widespread support for the principle of a "Robin Hood tax" but warned it could could be used by other Europe...The US National Nurses Union (NNU) has been a force of support for the tax. In a press release from their protest of the 2012 G8 Summit, co-president Karen Higgins said:National Nurses UnitedAJstreamThe NNU has organized protests in Chicago, New York, and Washington, DC.RT @NationalNurses: MT @wentrogue: Love the @NationalNurses photo at #m18rally in Chicago! http://twitpic.com/9mv0fw #RobinHoodTax GO, NURSES!!!Favstar PopPHOTO In red scrubs and green Robin Hood hats, @NationalNurses and allies demand a #RobinHoodTax http://www.dclabor.org/ht/display/ArticleDetails/i/102342 http://pic.twitter.com/OadRDFbSMetroDCLaborCouncilBeyond the adoption of versions of the FTT in individual countries, organizers are arguing for a global version of the tax. They say that such a tax could help to alleviate ills of global poverty, particularly health and climate concerns. RT @ClimateRush: Our future is not for sale #robinhoodtax at #big6bash http://pic.twitter.com/QGShBxbVUKYCCCoordinated with the timing of the 2012 AIDS Conference in Washington DC, the NNU organized protests calling for investment in global public health:RT @DCLabor: PHOTO . @NationalNurses take the steps of the Chamber of Commerce #RobinHoodTax #WeCanEndAids http://pic.twitter.com/G2YTE1MXKoalisiAIDS"Robin Hood Tax" Makes Case in DCtherealnewsRT @NationalNurses: RT @dclabor: "End AIDS with the Wall St tax! No more budget cuts on our backs!" #RobinHoodTax #WeCanEndAids http://pic.twitter.com/LwskzqjNA Good Man Cares#RobinHoodTax march leaves their mark on #BofA doors. #WeCanEndAids PIC http://pic.twitter.com/Or5CPspWMetroDCLaborCouncilOxfam International and Greenpeace have both joined the movement for a global Robin Hood Tax:We need money for green jobs, clean energy and healthy communities. That’s why we need a #RobinHoodTax. #LTFchat @UN_climatetalksGreenpeaceOxfam InternationalAJstream#robinhoodtax Campaigners from @oxfamgb @robinhood at Bob #Diamond inquiry dressed as...robin hood! http://pic.twitter.com/1HQZVtSYOxfam News Team

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Robin Hood Tax to the rescue?

Robin Hood Tax to the rescue?

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