Robin Hood Tax coalition submission to the Australian Tax Forum
The merry women and men at the Robin Hood Tax coalition worked with ‘Skippy’ our campaign mascot to write our submission to the Government’s upcoming Tax Forum.
“The Robin Hood Tax Australia Coalition is pleased to present this submission in response to the Australian Government Tax Forum Discussion Paper released on 28 July 2011. Our network is part of a global alliance promoting the call for a small tax on wholesale financial transactions. Therefore we direct the majority of our comments towards the business tax session at the Tax Forum. Analysis and estimates profiled herein suggest a financial transactions tax (FTT) would raise billions of dollars annually which would be allocated to the cost of funding domestic social and environmental programs, addressing the impacts of global climate change and supporting global poverty alleviation. Commensurately, a FTT of between 0.005% and 0.05% on institutional trades of currencies, stocks, bonds, derivatives and interest rate securities would reduce the enormous volume of low margin transactions involving speculative securities that are fueling Australian and global market volatility and instability.
We acknowledge the Government’s ambition that reforms to the tax system address the increase in demand for government services arising from an aging population and climate change. We also note the Government’s expectation that the cost of delivery of quality services will be spread fairly amongst those with the capacity to pay. Further, that reforms improve incentives across the system and across an increasingly globalised world with competition for mobile capital and labour. Importantly, the Government seeks a fair and simplified tax system with a transparent system of administration. The FTT responds to these criteria, promotes a more equitable society and ensures tax rules are kept up to date with the increasing number, importance and complexity of international transactions.
Over the last 18 months global interest in the FTT has grown demonstrably. Since the start of 2011 individuals, organisations and institutions have published a range of materials supporting the FTT. There has also been a rapid building of political support for FTTs as governments across the world seek long term measures to address national deficits, control market volatility and reduce inflation.”
Read the full submission here: RHT Australia Coalition submission to Tax Forum 23sept2011