The Robin Hood Tax, aka Financial Transaction Tax (FTT) or Tobin Tax was first proposed by John Maynard Keynes among others around 1936. Its purpose was to develop fairer taxation and curb speculation (today particularly relevant to rapid short-term currency speculation). The EU is in the process of implementing it also as a way of raising capital to soften austerity measures that followed the banks bail out. But the UK is trying to block this advance to protect its financial institutions, who are the strongest backers of the main party in power. We reproduce here a circular and petition by the Robin Hood Tax Campaign in the UK.
“Just a few months ago we were delighted to share the good news with you: eleven countries in Europe pledged to introduce Robin Hood Taxes — netting a combined whopping £30 billion. It’s hard to believe, but those taxes are now under threat from our government.
These taxes were the result of European leaders listening to the millions of ordinary people demanding the banks pay their fair share. George Osborne tried to block progress at every turn but European leaders fought on and we got the right result. But after losing the moral and practical arguments George Osborne [UK Chancellor of the Exchequer] is resorting to a desperate legal challenge to try and block these countries from introducing their own taxes.
We need to act fast to stop this dastardly Sheriff of Nottingham move and ensure these countries can introduce Robin Hood Taxes. Osborne tried to sneak this one unnoticed late on a Friday afternoon. But by speaking up and standing together we can send a clear message – we know what’s happening and we won’t let them get away with it.
Make no mistake this is not about defending British interests in Europe — it’s about defending the interests of this Government’s friends in the City of London. This legal challenge should be seen for what it is: a desperate last-ditch effort to protect the obscene profitability of our bloated financial sector.
In the UK, and across Europe we all paid to bail out the banks. And millions of us are still feeling the pain. These proposed financial transaction taxes are small but significant steps in ensuring the banks begin to pay their fair share. And that £30 billion would provide vital funds that can pay for healthcare and education at home, help people in the poorest countries and fight climate change.
Support for this tax is overwhelming: world leaders, faith leaders, economists, Nobel prize winners all cheered the lead taken by European countries. Don’t let George Osborne wreck this progress.
Yours,
