TIME TO INSTITUTE THE TOBIN TAX, A GENUINE ECONOMIC PANACEA, TO REMEDY THE MASSIVE INEQUALITY OF WEALTH A Financial Transaction Tax on speculative trading is sometimes called a Tobin tax, A genuine Economic Panacea after the man who first proposed it, Nobel laureate economist James Tobin. The revenue potential of a Tobin tax is huge. The Bank for International Settlements reported in 2008 that total annual derivatives trades were $1.14 quadrillion (a quadrillion is a thousand trillion). That figure was probably low since over-the-counter trades are unreported and their magnitude is unknown. A mere 1% tax on $1 quadrillion in trades would generate $10 trillion annually in public funds. That is only for derivatives. There are stocks, bonds, and other financial trades to throw in the mix; more than half of this trading occurs in the United States. TIME TO INSTITUTE THE TOBIN TAX, A GENUINE ECONOMIC PANACEA, TO REMEDY THE MASSIVE INEQUALITY OF WEALTH The revenue potential of a Tobin tax/Financial Transaction Tax is huge. The Bank for International Settlements reported that total annual derivatives trades were $1.14 quadrillion (a quadrillion is a thousand trillion). That figure was probably low since over-the-counter trades are unreported and their magnitude is unknown. A mere 1% tax on $1 quadrillion in trades would generate $10 trillion annually in public funds. That is only for derivatives. There are stocks, bonds, and other financial trades to throw in the mix; more than half of this trading occurs in the United States. . Another arresting fact is that just five super-rich commercial banks control 97% of the U.S. derivatives market: JP Morgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc., and Wells Fargo & Co. Promoters of international development have suggested that a mere .005% tax could raise between $30 billion and $60 billion per year, enough for the G7 countries to double international aid. Sen. Bernie Sanders proposed while he was campaigning for President a 0.10%… ONE-TENTH of 1% Financial Transaction Surcharge which would have generated $300 Billion /YR..a Modest proposal.. We, The Light Party, propose a 1.0% Financial Transaction Tax, (Surcharge) that would raise 3 TRILLION Dollars/year or More!! THIS IS A WIN-WIN ECONOMIC PANACEA Needless to say, This massive new revenue stream will easily fund many great social/critically needed environmental programs..Free college tuition, Medicare, and new Infrastructure Programs. Remineralization of The Soil Planting of Billions Of Trees.. etc, etc, etc!! For more information on the Tobin Tax CLICK HERE
