Tobin or not Tobin…

Update: It has come to my attention (via the Social Liberal Forum’s signposting towards a blog by the Robin Hood Tax campaigners) that a Tobin Tax and a Robin Hood Tax are not the same thing in terms of their end objective. However, even though the taxes sets out to achieve different things, the actual way of achieving it does not differ. So the means are the same, the ends are just defined differently, and to be honest I prefer the Robin Hood Tax’s to the Tobin Tax’s end values. Furthermore, the impressive range of financial transactions that the Robin Hood Tax has increased onto the Tobin Tax is important, this relates to the inter-changeable use of the words Transaction Tax and Tobin Tax in the media, as the former refers to a broader range of financial transactions (so shows how therefore there is some difference in terms of means, but not a substantial difference in terms of the actual method). Hence this is important to remember when I use the terms Tobin Tax and Robin Hood Tax within the blog, I am referring to Robin Hood Tax, but as stated the method of the tax is based on the Tobin Tax.

Firstly, apologies for the length of time since my last blog; it is suffice to say, it has been a busy week. Secondly, onto the blog.

It is a pleasing development to see a growing desire amongst the mainstream and non-mainstream political sphere for a Tobin Tax on banking transactions. To me, this is something that is so crucial and so simple to put in place; it would  help alleviate so many from the social, economic and environmental hardship  they face due to social relations and power structures within society. With the bankers resuming ‘back to business’ techniques, there is the growing need of a simple but substantial policy like the Tobin Tax.

The Independent report the growing mobilisation amongst social activists for the Tobin Tax, or what they are referring to as the ‘Robin Hood Tax’:

“A coalition of charities, unions and aid agencies have called on the UK’s political parties to support a global “Robin Hood tax” on financial transactions that could raise up to £250bn every year to fight poverty, protect public services and tackle climate change.”

An impressive 50 organisations so far support the ‘Robin Hood Tax’. This is such an important development; any political party serious around banking reform really cannot deny the rightful voice of so many powerful equality fighting organisations such as Oxfam and Barnardo’s and how prevailing their argument that the money raised from the tax should be used to tackle the inequalities within society such as poverty is. To be fair to Brown, he has been fairly supportive of the Tobin Tax of late, however, Labour were of electoral reform in 1997 (and before), that still hasn’t happened. However, maybe with the TUC supporting the campaign, Labour’s heartstrings may be pulled a bit more than they have thus far. Furthermore, this campaign for a ‘Robin Hood Tax’ is part of a growing international movement to reform the banking sectors. People are rightly fed up of the bankers acting as though they are somehow above the law (which incidentally is rightly why parliamentary privilege should not be used to help frauds).

This tax wont drive the bankers out of business, it will help tackle social hardship with hardly touching the banks balances. It is ironic really that such an inequality-riddled industry could actually help tackle hardship within society. Importantly, these are the type of policies we have to fight for; the economic recession offered us a chance to make important changes. Other banking reforms are key too such as breaking up the investment and retail banking and closing loopholes. On the latter point, to give the treasury credit, they are appearing to wake up a bit more recently, as illustrated by their closing of a £1bn loophole last Tuesday.

Policy action is needed, however, we have to recognise how important and exciting the growing international recognition of reform is. There is an increased desire for more meaningful political, economic and environmental reform. Nevertheless, there are still those dinosaurs politicians who try and prevent change; however, their reactionary response can be dissolved via continued collective mobilisation of an economic and social equality vision, as shown by the ‘Robin Hood Tax’ campaign.