Robin Hood Tax

11 European countries pass Robin Hood Tax on financial transactions

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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)

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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.

Is the ‘fiscal cliff’ a manufactured crisis or a real one? (video)

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Cliff diveby Pamela Powers Hannley

The mainstream media is abuzz with "news" of the fiscal cliff– a end-of-year deadline when the Bush Era tax cuts expire and other financial maneuvers by the federal government either end or take effect. (It's a really long list– read more about the fiscal cliff here and here.)

The fiscal cliff is a crisis manufactured by Congress because on multiple occasions they put off making decisions. Seriously, makeshift, stop-gap deals is their forte. 

Grassroots activists from Progressive Democrats of America (PDA) have hand-delivered 70 letters to members of Congress, urging them to vote against austerity measures which will hit average Americans and the poor the hardest and vote for measures– like the Robin Hood Tax— which will raise revenues by increasing taxes on the rich. 

Here in Tucson, PDA Tucson members delivered such a letter to newly elected Congressman Ron Barber.

For detailed background on the fiscal cliff, check out the video from The Real News, after the jump. 

Robin Hood Tax: PDA Tucson urges Barber to find his progressive side

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Robinhood

by Pamela Powers Hannley

Each month, Progressive Democrats of America (PDA) members across the country visit  their Congressional representatives and urge them to back progressive legislation. PDA Tucson visited Congressman Ron Barber's office today– the third time since he was elected.

One of the most important steps that Barber could take to help Arizona's economy and the country's would be to co-sponsor the so-called "Robin Hood Tax", which has now been introduced into the Congress as the Inclusive Prosperity Act (HR 6411) by Congressman Keith Ellison, co-chair of the Progressive Caucus (pictured above with Karen Higgins, vice president of National Nurses United). The Robin Hood Tax is a financial transaction tax on Wall Street. 

From National Nurses United:

New York – The U.S. Robin Hood Tax Campaign today applauded the introduction in Congress of a bill that would impose a tax on Wall Street speculation.  Introduced by Rep. Keith Ellison, HR 6411, the Inclusive Prosperity Act,  would raise up to $350 billion in annual revenues that would be used to breathe new life into Main Street communities across America, as well as international health, sustainable prosperity and environmental programs.   
 
The legislation embodies the Robin Hood Tax, a 0.5% tax on the trading of stocks, 50 cents on every $100 of trades, and lesser rates on trading in bonds, derivatives and currencies.  It marks the return of a sales tax on financial transactions in place from 1914 to 1966 and targets the high-risk, high-speed trading that dominates the markets. 

The letter PDA Tucson delivered to Barber today is after the jump. If you think Barber should co-sponsor the Robin Hood Tax, contact him by following this link.