As I have said I am not the first to advocate what I like to call a commission ( FTC- Financial Transaction Commission) not a Robin Hood Tax or any other kind of tax. The very word Tax these day sends quivers in all the wrong directions. However perhaps I am the first to broaden the application World Wide.
It would have little or no effect on world economies with very little cost to collect as present collection of taxes is done electronically.
Even if it was applied universally only to currency transactions over $20,000 it would produce billions with the potential to make a huge difference to the well-being of millions of people.
The foreign exchange (FOREX) market is the largest market in the world, with enormous sums being traded everyday. The size of the market is so huge that it is quite difficult to comprehend the amounts involved. More than $1,200 billion (or $1.2 trillion) worth of currency is traded each day, more than three (3) hundred (00) thousand (000) billion (000,000,000) dollars ($300,000,000,000,000) each year.
Lots of taxes are hard to collect, but this doesn’t seem like one of them.
Sales taxes have decent compliance, and they are often collected by small businesses conducting commerce in cash.
Trading, on the other hand, is conducted by large businesses on computers. This commission would be collected by the exchanges. If there’s no exchange involved, the buyer owes it. It would be paid on any trade carried out in the world or by any world entity or individual (a corporation’s offshore subsidiaries can’t get around it).
It can also be imposed on unfilled orders, derivatives, repos, currency trades and any financial transaction but this is already on the cards within the European Union and the USA and other countries
A financial transaction commission (FTC)—a commission on the trading of financial assets—has multiple appeals.
It is a progressive commission that would affect primarily wealthy individuals and large corporate institutions, with benefits potentially flowing to many. Further, while an FTC is not a substitute for effective regulation of finance, it would act to dampen some financial activity, helping to reshape a political economy in which finance has become overly dominant. Finally, the political logic of an FTC—the dynamic of Wall Street vs. Main Street—should give it wide appeal.
The first question is who would manage the fund ?
To create a totally new Organisation would be too cumbersome/ and too expensive to set up.
But a consolidation of existence United Nations organisations/ agencies would save money and resources.
Such a consolidation could combine THE FOLLOWING : OCHA, UNICEF, UNDP,UNEP,UN-HABITAT, UNODC, UNFPA,WFP – INTO (ONE ORGANISATION CALLED – UN CONCERN – OR WORLD AID COMMISSION- OR UN REACTION WORLD CONCERN.
The funds revenue could be allocated as follows.
50% – Rapid Aid – fully equipped Response -Centers.
25% – Climate Change Defenses.
25% – International Development Fund.
This concentration of aid over the next 10–12 years would constitute an unparalleled investment in development with benefits that will accrue over time as infrastructure is put into place in the poorest countries.
As always I end this blog fully admitting that I am no expert and all contributions are welcome. The next blog I will attempt to outline how the fund will be transparent and avoid outside political or other pressures in its allocation of funding.
If you are Interested I would be more than pleased if you would give your support to My Petition to lobby the United Nations and the G*8. ( link – https//www.change.org) – search Robert Dillon.