Buckley, Ross --- "0.05% as an Instrument of Global Justice and Market Efficiency" [2013] UNSWLRS 42

Last Updated: 14 July 2013

0.05% as an Instrument of Global Justice and Market Efficiency

Ross Buckley, University of New South Wales

This paper is available for download at Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2293539

Citation

This paper may be referenced as [2013] UNSWLRS 42.

Abstract

A financial transactions tax is a tiny tax on wholesale capital market transactions. Civil society has long advocated for it on social justice grounds. This so-called Robin Hood Tax would take from the rich and give to the poor. Revenue estimates for a global FTT of 0.05% are in the order of US$ 500 billion per annum. One-fourth of this revenue stream could achieve the first six Millennium Development Goals relating to poverty, health and education. Even if the developed countries retain all of the revenue raised, the impost would see financial services institutions making a fairer contribution to the societies in which they operate. So as an instrument of justice, the potential of a FTT is great – but the reasons to implement such a tax that are more likely see it brought into existence are that it will enhance the operation of contemporary financial markets substantially. This article explores the potential of this tax, the arguments for and against it, and its feasibility.