Global calls for G20 to enact financial transaction tax by The Robin Hood Tax Campaign 3:08pm 8th Sep, 2011   Professor Jeffrey Sachs is director of the Earth Institute at Columbia University:    I strongly support the call for a financial transaction tax, or FTT, which I believe would add efficiency to the global financial system by reducing destabilising speculation and by raising revenues fairly from the undertaxed, high-income financial sector.    As you know, we have a race to the bottom in the world tax system as the UK, US and others jostle to attract mobile capital. This race to the bottom in taxation and regulation was one reason that the financial system became dangerously deregulated in the lead-up to 2008. It is also why US corporate tax revenues as a share of GDP are plummeting. US multinational companies are increasingly hiding their profits in the Cayman Islands and other tax havens.    All countries have a shared interest in ending these tax havens. The FTT will collect on some of this hidden income. We can and should go beyond the FTT by clamping down directly on tax havens through a globally co-ordinated effort, starting within the G20.    The US, the UK, the EU as a whole and other regions need to avail themselves of this opportunity both to improve efficiency in the world financial markets and to raise revenues in an equitable manner.    I would hope that all members of the EU would agree to such a tax. It would be in your shared interest and would set a powerful standard for other countries, including my own, to follow.    Oxfam International: David Hillman of the Robin Hood Tax Campaign said: "The moral, economic and political case for a financial transactions tax is clear, we have Bill Gates, a thousand economists, France, Germany, Ho;;and, South Africa, the Vatican as supporters".    It has been given different names in different countries – the ‘Robin Hood’ tax in the United Kingdom, ‘Steuergegenarmut’ or ‘tax against poverty’ in Germany, the "Robin des Bois" in Canada or France, Zerozerocinque in Italy and "La Tasa Robin Hood" in Spain, but we are all talking about the same thing.    A tiny tax on the transactions of big banks that could deliver billions of dollars to help ordinary people and fight poverty around the world.    The recent economic crisis has left the world trillions of dollars poorer. Leading political figutres and humanitarian leaders have come out in support of a tax on the millions of transactions that take place every day between financial institutions. Social movements and civil society NGOs all over the world, including trade unions, groups working for global justice, environmental organizations, development organisations, peasant movements, faith-based groups and organizations fighting poverty all support this action.    It is estimated a levy of only around 0.05% on financial transactions could generate between $200-$700 billion worldwide. The revenue would be spent on: domestic public services supporting ordinary people who have been badly affected by the recent crisis, world poverty reduction and helping poor countries to adapt to climate change.    This tax could help to address the world’s major problems, without costing ordinary citizens.    To the heads of states of the G20 and the European Union, we want you to implement a Financial Transaction Tax in 2011 that will help regulate financial markets and raise revenue for global and domestic public goods such as health, education and water, and to tackle the challenge of climate change.    The Pope has come out as the latest supporter of a global Financial Transaction Tax after a note released yesterday by the Vatican called for a reform of the international financial system.    The note, released by the Pontifical Council for Justice and Peace, recommended the implementation of a tax on financial transactions “with costs proportioned to the complexity of operations, especially of those carried out on the ‘secondary’ market.”    The Vatican also proposed that funds raised by the tax be used to help low income countries suffering the effects of the financial crisis, stating that "Such taxation would be very useful in promoting global development and sustainability according to the principles of social justice and solidarity. It could also contribute to the creation of a world reserve fund to support the economies of the countries hit by crisis as well as the recovery of their monetary and financial system."    Respected medical humanitarian organisation Medecins sans Frontieres/Doctors without Borders (MSF) have issued a report today on how a Financial Transaction Tax would support Global Health.    The report says that the draft EU directive for a financial transactions tax (FTT) could help save millions of lives if a percentage were allocated to global health.    It details five personal stories which show the transformative impact an FTT allocation to global health could have.    The report reveals how interventions could prevent a child from becoming severely malnourished; protect children from deadly measles outbreaks; help prevent babies from acquiring HIV through childbirth; could offer people life-saving tuberculosis treatment sooner; save lives while dramatically reducing the spread of HIV.    “It’s time global health got its bailout.” says Dr Tido von Schoen-Angerer, Executive Director at MSF’s Access Campaign.    Global health is showing the strains of reduced funding.    Funding for HIV, for example, fell for the first time in 2009, and again in 2010. The Global Fund to Fight AIDS, TB and Malaria was forced to skip a year of grants for the first time in its history because of a severe financial shortfall. Funds from an FTT could help bridge the gap between what is needed and what has actually been given.    Sharonann Lynch, HIV/AIDS Policy Advisor for MSF’s Access Campaign, said:    “With governments scaling back foreign aid, there is no excuse not to allocate part of the funds raised from a financial transaction tax to health needs in developing countries. A financial transaction tax would give us the predictable and sustainable funding source that is needed now more than ever. It’s time to invest in real lives – real futures.”    * All G20 countries should support this important initiative. Visit the related web page
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