Is a Robin Hood Tax on banks a good idea?

The North Atlantic Treaty Organization, or better known as NATO, is holding its Summit in Chicago this week.  Anti-NATO protestors have made the Summit a major security concern for the city police. 

Amongst some of the protests were groups who were calling for a “Robin Hood” tax on banks and other financial institutions.

According to Robinhoodtax.org they are seeking ½% of 1% on trades of derivatives, stocks, bonds, and foreign currency exchange.

“You can think of it as a sales tax—the sort of taxes we all pay when buying clothes or other goods.  In fact, for every $100 ordinary Americans spend on goods they pay an average of $9.64 in taxes.  What a Robin Hood Tax asks for is that when the big banks and investments are trading they pay a tiny tax of less than 50 cents on $100 of trades.  In many cases it’d be less than a ½ a cent on $100. Surely that is not too much to ask?”

So, essentially the idea is that in order to clean up the mess that the American economy is in, we would tax the financial sector to assist in cleaning up everything?  It is quite an interesting concept especially to target one specific industry for cleaning up a financial crisis.

Obviously, people believe that the financial sector caused the meltdown, thus they should have to pay for it.  Also, they believe that it is a tax that is past due and the financial industry is under taxed to start.

What are your thoughts?  Could a tax on one specific industry change our financial situation as a country?

How is your personal situation? We are always willing to meet with you even if it isn’t tax season.

David Rocci 

 

Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

 

Posted To: Tax Rants by David Rocci By: David Rocci On: Saturday, May 19, 2012
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