Robin Hood Tax

About Robin Hood Tax

The Robin Hood Tax, also called the financial transaction tax or Tobin tax, is a proposed small tax on financial transactions. The tax is named after the legendary outlaw who took from the rich to give to the poor. A 0.05 percent tax on stock, bond, and currency transactions could raise hundreds of billions globally. The European Union proposed a financial transaction tax in 2011 covering 11 member states. Implementation has been repeatedly delayed. The UK stamps stock transfers at 0.5 percent, raising approximately 3 billion annually. Critics argue a financial transaction tax would reduce trading volume and harm market liquidity. Sweden introduced a financial transaction tax in 1984 but repealed it in 1991 after trading moved to London and revenue was far below projections.