Tobin And Robin Tax

Tobin and Robin Hood

Tobin tax
The Tobin tax was proposed by the macroeconomist James Tobin in 1971, but it wasn’t until the 1990’s that it was seriously considered, and after 2002 the Frenchorganisation (ATTAC) amongst others, started the campaign to use it.
It was created to regulate the use of speculation, by making it economically unavailable, by imposing a tax of the 0.1% in currencyconversions, in order to keep the currency and interest rates stabilised.
It is meant to stop speculation without harming long-term investments. This is because the constant flow of money in shortperiods of time makes it difficult for the countries to implement independent monetary policies.
Even though its creator didn’t accept what the activists proposed, the revenues from this tax, accordingto the latest, should be used to impulse economical and social development.

Robin Hood
It is basically a tax that the UK is trying to put into action. It is meant to generate billions of poundsyearly, by taking this money from the financial sector, and spending it in the public sector. It’s, just as Robin Hood used to, take from the rich, give to the poor.
There are different kind of RobinTaxes:
-Financial Transaction Tax (FTT)
Imposing a tax of 0.05% in transactions on foreign currency stocks and derivatives.
-Bank Levy
A fee imposed on large financial institutions, with nodiscount offered to volume buyers or repeat consumers.
-Financial Activities Tax (FAT)
Taxes excess profit or remuneration.

Both
The Tobin and the Robin Hood Taxes are both meant to obtain revenuesfrom international trades. Stocks, foreign currency, etc. The difference is that while Tobin focused more on reducing the harmful effects that speculation can create, the Robin Hood Tax centre is toproduce revenues by taking from rich, to help the public sector (the poor).
The Tobin Tax is aiming to maintain the currency and tax rates of a country stable, by deterring speculation, whilst the...