A tiny tax on banks that will have a massive impact on the poor
Oxfam Australia has joined the campaign to introduce a Robin Hood Tax – a tiny tax on financial institutions that would raise hundreds of billions every year to fight poverty.
How the Robin Hood Tax works
The Robin Hood Tax is a tiny tax (0.05%) on banks, hedge funds and other finance institutions. Levied on foreign exchange transactions, derivatives and share deals, it could raise hundreds of billions of dollars annually.
The tax is on very specific financial transactions, not on the everyday consumer. If enacted it would mean enough money to help provide vital investment in public services like healthcare and schools, as well as aid the fight against global poverty and climate change.
It's proposed that 50% of the money raised by the tax would go toward domestic health and education services in the country levying the tax, and to pay for the cost of the bail-outs associated with the global financial crisis.
The other 50% would be split equally between:
- Assisting poor countries tackle poverty by achieving the Millennium Development Goals
- Helping poor countries adapt to the impacts of climate change
The tax is expected to raise around $400 billion dollars a year (up to $18 billion dollars in Australia). By 2020 developing countries will need around $100 billion to assist them to adapt to the impacts of climate change. Much of this finance could come from the Robin Hood Tax.
Financial institutions through their greed and risk-taking created the global financial crisis, so its time they started to make a contribution to a better world. Read our Robin Hood Tax frequently asked questions.
You can help
We have an historic opportunity, at the G20 meeting in June, to get international agreement to introduce a Robin Hood Tax.
The International Monetary Fund (IMF) in an interim report released in Apri 2010, described it as a “practical” idea and also publicly credited the campaign for alerting it to the tremendous support for an international banking tax. However, many leaders including our Prime Minister have yet to publicly recognise the opportunity this tax provides us to easily and fairly reduce global poverty. Write to our government and ask for their support.
This is a simple and brilliant idea which transcends party politics and which – with your support – can become a reality. Hundreds of leading economic thinkers, from Joseph Stiglitz and Jeffrey Sachs to Warren Buffett and George Soros, support this tax. Let's make sure our government does too.
Find out more
Read more about the Robin Hood Tax by downloading our frequently asked questions, or visit the Robin Hood Tax site
Conditions of use
When you contribute content to our site, you retain ownership of the copyright. You also grant permission to Oxfam Australia to display and distribute your content, and to use it for any promotional purpose, without remuneration, compensation, or payment of royalties.
In addition, you are responsible for the content of your material. Oxfam Australia takes no responsibility for the content of any messages or information posted by contributors.
Oxfam Australia retains the right, in our sole discretion, to review, edit or delete any material which we deem to be illegal, offensive or otherwise inappropriate.
