A Financial Transaction Tax, now!
A Financial Transaction Tax, Now!
In response to the current crisis, governments around the world have been stabilizing and protecting their economies and jobs with taxpayers’ money. Many citizens ask themselves: Who’s going to pay the bill for this? Are taxpayers the only ones to pay, or will financial markets and investment bankers be held accountable to pay parts of the burden? Taxing the financial sector would enhance fairness. Moreover, this will increase government revenue, which is badly needed to support the transition towards more inclusive, fairer and cleaner societies. While dumping purely speculative, socially useless activities, a financial transaction tax would promote the sustainable, long-term investments that are needed to green our economies. And last but not least, global financial transaction tax of 0.05% could yield revenue of about 1% of nominal world GDP per year. This would provide funding for long-term public investments, to finance global development and climate change. Only through such policies can solidarity at a global level be enhanced.
Sustainable finance for sustainable jobs, and a Financial Transaction Tax.
The core purposes of banks were once to secure people's savings and lend to citizens and businesses, to invest in the creation of real value in a productive economy, and to invest in social infrastructure, social services, education and training. The modern banking system turned into quite another beast, serving the narrow interests of financial executives and destroying jobs and businesses through the greatest financial crisis since the 1930s. Moreover, these banks became "too big to fail" and now rely on public support for their continued survival. But they are as yet not lending satisfactorily to citizens and businesses for our economic recovery. The banking system must be made to get back to basics: back to serving real customers; back to supporting real businesses.
To know more about the financial transaction tax, please click here.