Working together to end poverty and injustice

The Robin Hood Tax: tax on bankers could raise billions of dollars to tackle poverty

Nov 2011: Great news for Robin Hood Tax campaign At the G20 summit in Cannes in November, a growing group of G20 nations from Brazil to South Africa backed the Robin Hood tax. Whilst all 20 leaders didn't reach unanimous agreement, many softened their position, with momentum building.

The Robin Hood Tax is a tiny tax on bankers that could raise billions of dollars around the world to tackle poverty and climate change abroad as well as poverty here at home.

• How does the Robin Hood Tax work?
• Why is it such a great idea?
• What needs to happen?
• Is this an easy way to raise money?
• The Robin Hood Tax – what next?

How does the Robin Hood Tax work?

The Robin Hood tax (also known as the Financial Transactions Tax) is a tax levied at a very low level, say 0.05 per cent (5c for every $100), on all financial transactions such as stocks, bonds, commodity trading and currency transactions. At such a low level, the tax would have no impact on our everyday shopping or even buying foreign currency for a holiday. But it would raise significant amounts of money when levied on big financial institutions and speculators that move hundreds of millions of dollars around daily in casino-style trading.

The funds raised from the tax could be used to make a real difference to people living in poverty and facing the devastating impacts of climate change.

International support for the Robin Hood Tax is growing – particularly in France, Germany and the UK. World leaders are also looking at other taxes on the financial sector, particularly on excess profits and bonuses. New Zealand needs to catch up.

Bill English – be our Robin Hood and give New Zealand's support to the tax that helps pay the bills without burdening the poor.

Why is the Robin Hood Tax such a great idea?

Bill Nighy explains this 'sweet, little idea' in the video below.

What needs to happen here and around the world?

We need to ask our leaders here in New Zealand to seriously consider the option of a financial transaction tax as soon as possible. Politicians around the world are doing just that - the UK's Deputy Prime Minister Nick Clegg and other European heads of state such as France's Nicolas Sarkozy have already spoken favourably about the tax and the Americans are also exploring similar avenues.

Is this an easy way to raise lots of money?

Yes. 0.05 per cent of $20,000 is only $10, so it hardly affects small transactions. However, where banks are changing $20 million, it could raise $100,000. All of this money could be spent on making the world a better place.

The Robin Hood Tax – what next?

This tax is an entirely realistic proposition. The time is right to ensure financial institutions make a contribution to the world they work in. You can help make this happen.

• Sign up to be a campaigner, so we can keep you posted on the next steps of this new campaign.
• Read Oxfam ED Barry Coates' opinion piece for the Dominion Post: We could replace tax on essentials with one on destructive speculation
• Add a comment to our opinion piece on the Dominion Post
• Read Sean O'Grady's article for The Independent: Hundreds of economists call for tax on currency speculation