Robin Hood Tax (once before known as the Tobin Tax) is a proposed tax on bankers to the sum of o.05% that would raise an estimated $400 billion to tackle poverty and climate change, at home and abroad.

The supporters of the tax assert that if governments took a tax of 0.05% from international bankers’ transactions, it could generate hundreds of billions of pounds every year – that could stop cuts in crucial public services at home in UK, and help fight global poverty and climate change.

With current facebook fans at 70,000 members and rising and a 40:1 ratio of the general public voting yes over no to the tax on the robin hood website. This is a clear indicator of public support.

Backed by a youtube fought video campaign featuring Bill Nighy, the video will soon be viral at 200,000 views and rising. Check the video campaign below:

However, despite the wide public support, many are sceptical or downright slamming the tax as an unfeasible option that many supporters have maybe not thought about. Madsen Pirie; President of the Adam Smith Institute and author of the newly published ’101 Great Philosophers’ – suggests the following in an article:

a tiny tax that will raise big revenues of $400bn. This is indeed a substantial amount, representing more than half of the profits of the worldwide banking industry ($788bn in 2006). They also say that it will hit only the rich, since it will not affect the retail banking sector.

This fails to recognise that taxes are always passed on to the customer.

The “Robin Hood Tax” might look superficially attractive, but it would do profound damage to the world economy and, far from hitting “the rich”, it would be the world’s poor who suffered most. This could be one reason why Bank of England Governor Mervyn King described it as “bottom of the list” of options.

If campaigners want to spend charitable funds on these campaigns, they would be more effective in calling not for higher taxes, but for the end of the protectionist tariffs that prevent poorer countries from selling their goods. Madsen Pirie

What are your views on the Robin Hood Tax? Yes or No? Let us know your thoughts below!

This is an interesting debate, that is sure to flare up and hit more mainstream public media in the coming weeks. More, on the Robin Hood Tax as and when…

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Ex-IMF chief economist Simon Johnson, although now no longer in his role at the IMF has a lot of weight behind his name and his words should be heard. He had some worrying things to say in an interview with the BBC.

Talking to the  BBC, Simon Johnson said the UK should be seen in the same category of countries as Greece and Spain, who are facing severe debt problems.

Johnson is quoted as saying:

Now Greece is an an extreme example – there I think you can see that it’s going to get very messy very quickly – but unfortunately the budget situation in these other countries is also weak. And I have to add the UK to this list. Unless you can persuade the markets that you’re really going to bring the budget under control within the foreseeable future and you’re going to have some credible actions – and you’re going to have to do some persuading – you’re going to have big trouble.Simon Johnson

Pressure is mounting on the EU to take action and this will be brought into sharp focus this coming week when the new President of the European Council Herman von Rompuy chairs a special economic summit in Brussels at which the public finances of Greece, Spain and Portugal will be discussed.

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Business / times and situations have been hard over the past 18months with many forced to cut-back heavily or worse into administration, closure or bankruptcy. Today, the BBC reported that the UK economy was out of the recession:<

The UK economy has come out of recession, after figures showed it had grown by a weaker-than-expected 0.1% in the last three months of 2009.BBC

Despite recovery signs such as an unemployment fall for the first time in 18months, many are still very tentative about the so called announced ‘recovery’ . At a nice 0.1% of growth it is hardly riveting or re-assuring news. The report was prompted by an ONS announcement today broadcast on Sky News that the UK had emerged from its recession.

View on Youtube

Even with the political backs and forths that are likely to ensue following this announcement between Chancellor of the Exchequer Alistair Darling and the opposition. I can at least take some solice in that some grown, no matter how staggered and anti-climatic is better than no growth. Part of the disappointment for many may lie in the exaggerrated expectations and promises for growth that were earlier promised.

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