The Tobin Tax Initiative ceedweb was developed by the Nobel laureate James Tobin, Ph.D., from Yale University in the U.S. Questions and answers about this financial proposal can be studied on the website.
This financial proposal has several elements. The main idea of this plan is the sales tax on cross border currency transactions. This type of financial option can be presented by national legislatures and then followed by cooperation. The revenues generated can help with currency volatility and help to restore national economic sovereignty.
The revenues from this type of international monies can be used to prevent future global financial crises. The revenue generated from a plan like this is estimated to be from $100 to $300 billion dollars per year. The trust fund set up for this type of economic sales tax can be used to assist with the following global problems:
1. The generated funds can help to prevent global warming.
2. The funds can be used to prevent global diseases.
3. The monies can be used to help with international poverty.
The Tobin tax initiative can be implemented in the following manner:
1. Currency trading on a short term basis is seen by many analysts as being speculative.
2. The sales tax is imposed on a percentage of the volume of short term currency trades completed at 10 cents to 25 cents per hundred U.S. dollars.
3. The sales tax is used to discourage short term currency trading. The long term trades would remain unchanged.
4. This type of sales tax would shrink the currency market and generate billions in sales tax revenue.
5. The sales tax revenue can be held in a trust fund and used for urgent international priorities.