Tobin Tax Proposal

Some 350 economists (including Joseph Stiglitz) have signed a letter proposing a modest 'tobin tax' on speculative dealings on shares and currency movements. The tax would amount to 0.05% of transactions.

"This tax is an idea that has come of age. The financial crisis has shown us the dangers of unregulated finance, and the link between the financial sector and society has been broken. It is time to fix this link and for the financial sector to give something back to society.

"This money is urgently needed. The crises of poverty and of climate change require an historic transfer of billions of dollars from the rich world to the poor world, and this tax would offer a clear way to help fund this." (from Independent)

More on advantages and disadvantages of a Tobin Tax