The Tax that Dare Not Speak...

Doug Henwood dhenwood at panix.com
Fri May 22 07:47:52 PDT 1998


Carrol Cox wrote:


>What is it? Just a preliminary label of 10 words or so. I didn't ask for
>an understanding of it. I asked for a semi-intelligible label of what it
>is that is to be understood. If it can't even be named to non-economists
>that haven't heard of it before, then.....

A Tobin tax is a levy on financial transactions, most typically those in foreign exchange. The most common figure is around 0.5% of the value of the trade. It's designed at least as much to slow trading as it is to raise revenue. Wall Street regards it as a vampire would a clove of garlic; it's ok that we should all pay sales taxes of 5 or 8% on the necessities of life, but propose a light tax on some useless transactions, and you're threatening all that's sacred.

Doug



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