11 European countries pass Robin Hood Tax on financial transactions

Robin-h-05-sm72by Pamela Powers Hannley

Eleven European countries, who collectively account for two-thirds of the EU's economy, have passed a new financial transaction tax.

Also known as the Robin Hood Tax in the US, a financial transaction tax charges a small percentage fee for every stock market deal. The new European law will charge a rate of 0.1% on any trade of shares or bonds and 0.01% on any financial derivative contract, according to an article in Think Progress. These tiny percentages would raise an estimated 57 billion euros per year if all 27 of the European countries adopted the law. (At an exchange rate of 1 EU = $1.33, that is an estimated $75.8 billion in US dollars per year of revenue generation.) In addition to raising funds, the financial transaction tax discourages speculative computerized trading. Also know as "rent seeking," computers are set up to buy stocks and sell them quickly– sometimes when the profit is just pennies. If you do enough of this automated micro-trading, you can make a bundle of money; but this speculative behavior adds volitility to the market and produces nothing except fot the gamblers who are in the game. The Ed Schultz Show has a great explanation here

 In all, 40 countries worldwide have adopted a financial transaction tax. The 11 countries who have passed the Robin Hood Tax recently include two European powerhouses– Germany and France– plus Spain, Portugal, Italy, Belgium, Austria, Slovakia, Slovenia, Greece, and Estonia. The financial problems facing Greece, Spain, and Italy have been in the news for years. This tax will help cash-strapped governments to become more stable. 

Gosh, what other country is facing dire financial choices and needs an infusion of cash? Find out how the Robin Hood Tax would help the US economy after the jump.

Of austerity and cookies (video)


Tax-wallstby Pamela Powers Hannley

These days, you can't turn on the TV or radio without hearing a "news" story or pundit "analysis" about the battle over deficit reduction by budget cuts or revenue generation.

Republicans want to balance the budget on the backs of the middle class and the poor by cutting "entitlements" (ie, Social Security, Medicare, Medicaid, unemployment, Pel Grants, food stamps, and whatever programs are left of Johnson's War on Poverty). Heaven forbid that they would consider taxing the rich, taxing financial transactions, raising the income cap for Social Security benefits, or anything like that. 

Austerity is their battle cry. After the jump, watch this video featuring John Nichols of The Nation explaining the hoax of austerity.

PDA Tucson’s Phil Lopes runs for Dem Party Vice Chair

by Pamela Powers Hannley

On Saturday, January 26, 2013, the Arizona Democratic Party will hold its reorganization meeting in Phoenix. New state party officers will be elected by elected precinct committee (PC) people. If you are a progressive and an elected, please consider voting for Phil Lopes. If you are a PC and can't make the meeting, contact your legislative district chair and give someone your proxy vote. Here is the proxy form. 

Below is Lopes' candidate statement…

Phil Lopes for Vice Chair

Dear AZ State Democratic Committee member,
This letter is to ask for your vote for the position of Vice-Chair of the AZ Democratic Party. I would be honored to have your support and vote. I am running for Vice-Chair to:
  • strengthen the party, especially in public policy advocacy, and,
  • to improve the public’s perception of the Party

PDA People’s Inauguration live– NOW

by Pamela Powers Hannley The People's Inauguration– sponsored by Progressive Democrats of America (PDA)– is live streaming now here. Great stuff– War on Poverty, immigration reform, organizing the unemployed, Robin Hood Tax, eminent domain for economic development. Jesse Jackson, Randy Parraz, Congressman John Conyers, and labor leaders just spoke. Randy Parraz: "Change is coming to … Read more