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Financial Transaction Tax

The European Commission lays the foundations for a Financial Transaction (Robin Hood) Tax

The European Commission's proposed draft law for a financial transaction tax represents the crucial first step in the journey towards a Robin Hood Tax. 
 
‘About time...’ that's the message from David Martin, Scotland senior European MP, following a major announcement by Commission President José Manuel Barroso in the Parliament today (September 28 2011).
 
David Martin, the Labour spokesperson in the European Parliament on international trade also warned the British government that it must listen to campaigners' calls for a fairer tax system.

‘I have been campaigning the length and breadth of Scotland for several months now and this tax would be very popular, explained Mr Martin, a minuscule tax of 0.05% on financial institutions (not citizens) would bring in £billions to help fight poverty and tackle climate change.

‘At a time when billions of pounds are being slashed from public spending, the financial sector is not paying its fair share.  We want a very small tax on global financial transactions.  It is supported by such people as President Obama, Joseph Stiglitz, Bill Gates and organisations like Oxfam, Barnardos and UNICEF,’ continued the European MP

‘UK Government Ministers must listen to the public and introduce this Robin Hood Tax – it’s right and fair.
 
Mr Martin stated from Strasbourg: ‘The British government should give these proposals proper consideration and not dismiss them out of hand just to please City suits.
 
‘We need to look at the detail and ensure that any proposals represent a good deal for Britain, given its dominance in financial services.  But I welcome the Commission's proposal as a starting point in the debate.
 
‘The proposals can't be passed without British agreement, so let's engage in the process and try to find a way in which the financial sector can pay its fair share towards the cost of the economic crisis – the benefitted in the ‘good’ times.
 
‘Millions of people have made it clear that they would like to see a Robin Hood Tax that uses a very small levy on financial markets to support good causes both at home and abroad.
 
‘Of course the banks and hedge funds will cry foul, but we need politicians who are willing to stand up for the public interest not vested interests.
 
‘A well implemented Financial Transaction Tax could be a way of making our tax system fairer, helping lift the burden from the hard-working majority and bringing greater stability to financial markets.
 
‘As families up and down the country feel the pinch, there is a danger that Cameron will try to hide behind 'EU tax' rhetoric to avoid a public debate about whether the financial sector pays its fair share in these difficult times.’
 

NOTES
 
The European Commission President José Manuel Barroso announced proposals for a European Financial Transaction Tax to the European Parliament in Strasbourg today (September 28 2011).
 
The proposals will be subject to lengthy negotiations and discussions and will need the unanimous approval of all EU countries, as well as the backing of the European Parliament, before standing any chance of entering into force.