Robin Hood Tax - possibility, but unlikely if not unified

In the UK, there has been much discussion about the Robin Hood Tax. What is it you ask? If you know the story of Robin Hood, it is basically to steal from the rich and give to the poor, literally.

This is how it works, a tiny tax estimated at about 0.05%, would be applied on all financial transactions involving foreign exchange, stocks, bonds, and derivatives traded worldwide. Globally, the value of these markets is $3.26 trillion a year. For the UK, they've worked this out to approx 250 billion pounds (that's around AU$400 billion annually) that could be raised. Then the money would go into tackling poverty and climate change. 50% utilised for domestic needs (incl school funding), whilst the other 50% split into both international developments and climate change.

It sounds very simple and sounds like a good idea. However there are so many considerations when it comes to taxes and how the revenue ultimately gets spent.

Will that work in Australia? Well if Britain did introduce it, the reality is that most international banks located in the city would just relocate to another country where their transactions aren't taxed. (that's exactly like the 50% once-off tax which may be being implemented on bonuses above 25,000 pounds? and senior executives may just consider relocating from London to say Zug? hehee well very competitive tax rates it's been said) Therefore unless countries adopt the tax unanimously, no country would adopt it at all.

Watch this video, Bill Nighy (yes that guy from the movie "Love Actually") plays the role of the Banker. It's funny too.

robinhoodtax.org.uk/