Charities call for Tobin tax to raise money for development
Leading charities back Gordon Brown’s proposals for a tax on financial transactions
A group of charities have called for the introduction of a Tobin tax as a
“bold, just and practical idea” for raising extra money for development and aid
pledges.
In a letter to the Financial Times, several senior members of
charities including Oxfam, Save the Children, Action Aid and Stamp Out Poverty
argued that money raised by a tax on financial transactions should be used to
help those suffering most because of the economic crisis.
“The actions of bankers and weak financial regulation in Europe and North
America made a massive contribution to the global economic crisis, which is
forcing 100 more people a minute into extreme poverty,” the letter stated. “A
financial transaction tax would meet this human cost of the crisis and could
help developing countries deal with climate change, build their health systems
and achieve the Millennium Development Goals.”
The letter added that those who argue the tax is unworkable and would drive
financial services abroad are ignoring the fact that the UK already levies a
stamp duty of 0.5% on share transactions without damage to the City.
It called for the UK government to help in building international support for
the initiative, however Brown’s attempts to raise support for a Tobin tax failed
to win backing at the G20 summit this week.
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