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Reaction to the Tobin tax

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[This article is a list of all notable support, criticism, or commentary of Tobin Tax. This section has been split from the main article, because it added unnecessary length to that page. As such, this article needs improvement and may not conform to Wikipedia standards. You can help by editing it.]

Government officials

From 1990 to 1999

From 2000 to 2004

  • 2000 - Supporters - Finnish Government[3]
  • In late 2001, a Tobin tax amendment was adopted by the French National Assembly. However, it was overturned by March 2002 by the French Senate.[5][6][7]
  • 2001 - Supporter: Fidel Castro - At the UN September 2001 World Conference against Racism, when the issue of compensation for colonialism and slavery arose in the agenda, Fidel Castro, the President of Cuba, advocated the Tobin Tax to address that issue. (According to Cliff Kincaid, Castro advocated it "specifically in order to generate U.S. financial reparations to the rest of the world," however a closer reading of Castro's speech shows that he never did mention "the rest of the world" as being recipients of revenue.) Castro cited Holocaust reparations as a previously established precedent for the concept of reparations.[8][9]
  • In January, 2003, in Latin America, the Tobin tax was supported by the president of Brazil, Luiz Inácio Lula da Silva, and the president of Venezuela, Hugo Chávez.[10]
  • On June 15, 2004, the Commission of Finance and Budget in the Belgian Federal Parliament approved a bill implementing a Spahn tax.
  • June 2004 - Supporters - 864 Parliamentarians and government officials around the world: "An effort to mobilize support among parliamentarians around the world resulted in 864 signatures to a pro-Tobin tax resolution by June 2004"[11][12] Officials were from Argentina, Australia, Austria, Belgium, Brazil, Cameroun, Canada, Costa Rica, Denmark, Djibouti, Finland, France, Germany, Greece, India, Ireland, Italy, Ivory Coast, Luxemburg, Madagascar, Mali, Mexico, Netherlands, New Zealand, Norway, Portugal, Senegal, South Africa, Spain, Sweden, Switzerland, UK, USA[13]

From 2005 to 2008

In 2009

In 2010

  • On January 26, 2010, Bank of England Governor Mervyn King dismissed the idea of a “Tobin tax”. “Of all the components of radical reform, I think a Tobin tax is bottom of the list,” said Mr King. “It’s not thought to be the answer to the 'Too Big to Fail' problem - there’s much more support for the idea of a US-type levy.” [26]

Non-government supporters and opponents

1972 to 1990

1990 to 1999

  • June 16, 1995, Paul Bernd Spahn opposed the original form of the Tobin tax and proposed his own variation (see Spahn tax).
  • On August 1, 1995, an IMF Working Paper No. 95/77 Financial Transactions Taxes by Shome,Parthasrathi and Stotsky, Janet Gale found that "the economic effects of financial transactions taxes on capital markets are seen to be pervasive. They may impose significant efficiency costs by impairing the smooth functioning of financial markets, increasing the cost of capital, and distorting the structure of capital financing. Their effects on the volatility of capital flows, either in domestic or international financial markets, are uncertain, as are their distributional and revenue effects."[31]
  • 1997 - Supporter - Ignacio Ramonet
  • 1998 - Supporter - Economics writer Linda McQuaig[1]
  • 1998 - Supporters - ATTAC (Association for the Taxation of Financial Transactions for the Aid of Citizens)

2000 to 2004

  • In 2001 the charity War on Want released The Robin Hood Tax,[32] a report explaining the case for a currency transactions tax. War on Want also sets up the Tobin Tax Network to develop the proposal and press for its introduction.
  • 2001 - September 19 - Speculator George Soros, put forward a different proposal, Special Drawing Rights or SDRs that the rich countries would pledge for the purpose of providing international assistance, without necessarily dismissing the Tobin tax idea.[33] He stated, "It is not at all clear to me that a Tobin tax would reduce volatility in the currency markets. It is true that it may discourage currency speculation but it would also reduce the liquidity of the marketplace."
  • In 2001, the International Monetary Fund conducted considerable research that opposes a transaction tax. In 2001 findings by Habermeier, Karl Friedrich and Kirilenko, Andrei state that "transaction taxes or such equivalents as capital controls can have negative effects on price discovery, volatility, and liquidity and lead to a reduction in the informational efficiency of markets."[34] (See also IMF position of 2010, below)

2005 to 2008

  • In 2006, Markku Lanne and Timo Vesala of University of Helsinki write in the Bank of Finland Research Discussion Paper No. 11/2006 The Effect of a Transaction Tax on Exchange Rate Volatility(2006) that "a transaction tax is likely to amplify, not dampen, volatility in foreign exchange markets."[35]
  • In September 2006, George Monbiot argues in favour of a Tobin Tax, in his book Heat: How to Stop the Planet Burning.[36]

2009

  • In August, 2009, Adair Turner, chair of the United Kingdom Financial Services Authority, in an interview for Prospect magazine supported the idea of new global taxes on financial transactions, warning that a “swollen” financial sector paying excessive salaries has grown too big for society.[37][38]
  • October 5, 2009 - Supporter - Joseph Stiglitz (recipient of the Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal in 1979, and former Senior Vice President and Chief Economist of the World Bank.)[39]
  • In early November 2009, the "Lex" column of Financial Times opposes the Tobin tax, in "Tobin or not Tobin" it writes "The Tobin tax should remain a curiosity of economic history."[40]
  • In November 2009, Matthew Sinclair, Research Director of the TaxPayers' Alliance, wrote an article in the London newspaper City AM A Tobin Tax would destroy London without making the world safer [41]
  • In late November 2009 Paul Krugman, New York Times columnist and professor of Economics and International Affairs at Princeton University, argued that a Tobin Tax would have ameliorated the Financial crisis of 2007–2010. He wrote, "bad investments aren’t the whole story of the crisis. What turned those bad investments into catastrophe was the financial system’s excessive reliance on short-term money ... a financial transactions tax, by discouraging reliance on ultra-short-run financing, would have made such a run much less likely. So contrary to what the skeptics say, such a tax would have helped prevent the current crisis — and could help us avoid a future replay." Krugman wrote that it is "an idea whose time has come."[42]
  • In late November 2009, Economist Charles Goodhart, Professor Emeritus of Banking and Finance at London School of Economics and developer of Goodhart's law, was scathing in his criticism of "radical and consumer groups [that] go on backing the Tobin tax idea". He argued, "Many of those who support such a tax neither know, nor care, what effects it might have on market efficiency. Besides a, generally misguided view that its imposition would fall primarily on the financial sector, rather than be passed on to its customers, the hope is that such a tax would produce lots of lovely revenue, to be spent on good deeds, such as foreign aid." [43]
  • December 7, 2009, economist Stephany Griffith-Jones advocated a very low but "internationally co-ordinated tax on financial transactions, often described as a Tobin tax."[44]
  • December 7, 2009 - Supporter - Hector Sants, Chief Executive Officer of the United Kingdom Financial Services Authority[44]

2010

(The) imposition of a global tax is an inappropriate response and a further burden to industries, especially small and medium enterprises, and consumers in the wake of the global financial crisis. We also believe that the proposals under consideration would be harmful for a range of additional reasons, including the practical challenges of implementing any such tax.[45]

  • 31 March 2010 - "350 economists, including Jeffrey Sachs and the Nobel laureate Joseph Stiglitz, from more than 35 countries signed a letter to the leaders of the Group of 20 countries calling on them to impose a tax on financial transactions between financial institutions, but not on transactions conducted by individuals."[46] The then leaders of Europe's three biggest economies - Angela Merkel of Germany, Nicolas Sarkozy of France and Gordon Brown of Britain -were "promoting a financial transaction tax as a way of raising as much as $US 400billion a year to fulfil commitments to domestic budgets, poverty reduction, global health and climate change mitigation."[46] A coalition of community organizations in Australia also supported the tax.[46]
  • April 16, 2010 - International Monetary Fund - "While the IMF does not endorse a Financial Transaction Tax (FTT), it concedes that 'The FTT should not be dismissed on grounds of administrative practicality.'[47] This is important because the Fund might have rejected it outright. However, the IMF interprets its mandate from the G20 quite narrowly and therefore does not endorse the FTT on the grounds that it 'does not appear well suited to the specific purposes set out in the [2009/2010] mandate from the G-20 leaders.'[47]"[48] (See also IMF position of 2001, above)
  1. ^ a b c Cite error: The named reference cult was invoked but never defined (see the help page).
  2. ^ Brash, Donald T. (1996-06-29). "New Zealand and international financial markets: have we lost control of our own destiny?". Reserve Bank of New Zealand. Retrieved 2008-10-19.
  3. ^ a b c Cite error: The named reference Round was invoked but never defined (see the help page).
  4. ^ Hansard (March 23, 1999). "36th Parliament, 1st Session; EDITED HANSARD • NUMBER 202; CONTENTS; Tuesday, March 23, 1999". Hansard. Retrieved 21 March 2010.
  5. ^ Cite error: The named reference Fougier was invoked but never defined (see the help page).
  6. ^ Cite error: The named reference Kim was invoked but never defined (see the help page).
  7. ^ Cite error: The named reference Ben-Ami was invoked but never defined (see the help page).
  8. ^ Cite error: The named reference key was invoked but never defined (see the help page).
  9. ^ Cite error: The named reference Kincaid was invoked but never defined (see the help page).
  10. ^ (BBC News)
  11. ^ Taylor, Rupert (editor) (2004). Creating a better world: interpreting global civil society. 1294 Blue Hills Avenue, Bloomfield CT 06002 USA: Kumarian Press. p. 123. ISBN 1-56549-188-2. {{cite book}}: |first= has generic name (help)CS1 maint: location (link)
  12. ^ Nelson, Paul (December 2002). "New Agendas and New Patterns of International NGO Political Action". Voluntas: International Journal of Voluntary and Nonprofit Organizations. 13 (4). Springer Netherlands: 377–392. doi:10.1023/A:1022062010375. ISSN 1573-7888. Retrieved March 2010. {{cite journal}}: Check date values in: |accessdate= (help); Cite has empty unknown parameter: |coauthors= (help)
  13. ^ World Parliamentarians for the Tobin Tax (January, 2003). "World Parliamentarians for the Tobin Tax". World Parliamentarians for the Tobin Tax. Retrieved 21 March 2010. {{cite web}}: Check date values in: |date= (help)
  14. ^ SIN PERMISO - artículos en la WEB
  15. ^ "Sarkozy to press for 'Tobin Tax'". BBC News. London. September 19, 2009.
  16. ^ Tom Braithwaite (September 24, 2009). "Volcker backs new bank taxes". Financial Times. Retrieved 6 July 2010.
  17. ^ Cristina Arantes Berry and Marcelo Natale (October 21, 2009). "Brazil Tax Alert - 21 October 2009".
  18. ^ a b Cite error: The named reference EUcall was invoked but never defined (see the help page).
  19. ^ a b c Cite error: The named reference Lukewarm was invoked but never defined (see the help page).
  20. ^ Patrick Hennessy & Angela Monaghan (November 7, 2009). "Gordon Brown: worldwide snub over tax plans". Telegraph. Retrieved 2010-01-15.
  21. ^ "DEFAZIO INTRODUCES LEGISLATION INVOKING WALL STREET 'TRANSACTION TAX'". Website of Peter DeFazio. Retrieved 13 February 2010.
  22. ^ Matt Cover (December 7, 2009). "Pelosi Endorses 'Global' Tax on Stocks, Bonds, and other Financial Transactions". CNSNews.com. Retrieved 13 February 2010. [dead link‍]
  23. ^ Tony Czuczka (December 10, 2010). "Merkel Says Germany Prefers Financial Markets Transaction Tax". Bloomberg.
  24. ^ Cite error: The named reference Tobin tax remains Treasury ambition was invoked but never defined (see the help page).
  25. ^ Michael Sheilds (December 13, 2009). "Volcker finds British bonus tax "interesting": report". Reuters.
  26. ^ Emma Saunders (January 26, 2010). "Mervyn King: Radical reform is needed". Financial Times. Retrieved 2010-01-26.
  27. ^ Doug Saunders (February 5, 2010). "A Tobin tax? The outré is back in". The Globe and Mail. Retrieved 11 February 2010.
  28. ^ Cite error: The named reference David Charter was invoked but never defined (see the help page).
  29. ^ Cite error: The named reference Tobin was invoked but never defined (see the help page).
  30. ^ Summers, Lawrence H.; Summers, Victoria P. (1989). "When financial markets work too well: A cautious case for a securities transactions tax". Journal of Financial Services Research. 3: 261. doi:10.1007/BF00122806.
  31. ^ http://www.imf.org/external/pubs/cat/longres.cfm?sk=1353.0
  32. ^ The Robin Hood Tax
  33. ^ Asia Society: Speeches
  34. ^ http://www.imf.org/external/pubs/cat/longres.cfm?sk=4068.0
  35. ^ Lanne, Markku; Vesala, Timo (2006). "The Effect of a Transaction Tax on Exchange Rate Volatility". Bank of Finland Research.
  36. ^ Monbiot, George (2006). Heat: How to Stop the Planet Burning. South End Press. ISBN 0-7139-9923-3. {{cite book}}: Unknown parameter |month= ignored (help)
  37. ^ Daniel Pimlott (2009-11-08). "Q & A on Tobin tax". The Financial Times. Retrieved 2009-12-11.
  38. ^ George Parker, Daniel Pimlott, Kate Burgess, Lina Saigol and Jim Pickard (August 28, 2009). "Turner relishes role on City front line". Financial Times. Retrieved 2009-12-31.{{cite web}}: CS1 maint: multiple names: authors list (link)
  39. ^ Cite error: The named reference Edmund Conway was invoked but never defined (see the help page).
  40. ^ http://www.ft.com/cms/s/3/e16e751a-cc96-11de-8e30-00144feabdc0.html
  41. ^ Cite error: The named reference taxpayersalliance.com was invoked but never defined (see the help page).
  42. ^ Paul Krugman (November 26, 2009). "Taxing the Speculators". New York Times. Retrieved 2009-12-17.
  43. ^ http://www.eurointelligence.com/article.581+M5e37ae11260.0.html
  44. ^ a b Stephany Griffith-Jones (December 7, 2009). "Now let's tax transactions". The Guardian. Retrieved 2010-03-13.
  45. ^ Cite error: The named reference imf.org was invoked but never defined (see the help page).
  46. ^ a b c Peter Singer (March 31, 2010). "Tax the banks and give to the poor, Robin Hood style". Sydney Morning Herald. Retrieved 10 July 2010.
  47. ^ a b International Monetary Fund (April 16, 2010). "A FAIR AND SUBSTANTIAL CONTRIBUTION BY THE FINANCIAL SECTOR INTERIM REPORT FOR THE G-20". International Monetary Fund; Excerpt and LINK TO FULL REPORT as a PDF - republished online by Global Print Monitor on April 22, 2010. Retrieved 25 June 2010.
  48. ^ Cite error: The named reference Dillon was invoked but never defined (see the help page).
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