At the Copenhagen Climate Summit the idea of a “Tobin Tax”, a tiny tax on every international currency-exchange transaction, as a way to raise the proposed $100 billion dollars per year that is now the bare minimum that must be pledged by the developed countries to support the transition of poor (developing) countries to sustainable energy production and out of absolute poverty. Actually 300-400 billion dollars per year is the amount that is recommended.
This blog from last year (http://makewealthhistory.org/2009/01/07/the-tobin-tax/) says that a tax of 1 quarter of a cent on each such transaction would raise $300 billion.
This sounds like an excellent idea to me, if properly implemented.
One of my Myspace friends cites an alarmist opinion piece
(http://www.prisonplanet.com/final-copenhagen-text-includes-global-transaction-tax.html) that laments the possibility of such a tax, saying that it would be collected unaccountably by the International Monetary Fund (IMF), and that it is already included in the secret draft of the Copenhagen agreement. This source says that it would cost each US family “at least $3000 a year”.
Assuming that the average American family spends $60,000 a year, and that every dollar they spend is subject to this tax, that would come to $150 per year per family. Since most family expenditures do not involve currency exchanges, the actual amount would probably be less. Two Starbucks coffees a week would cost more than that. I share a concern over the IMF’s governance and policies and would want the money to be handled transparently by a different agency, but a wealth transfer from the rich countries to the poor countries is self-evidently necessary to enable the majority of the world’s population to survive the disastrous effects of climate change and make a livable future possible. If the price of gasoline went up three cents, you’d pay it without batting an eyelid; this proposed (not enacted yet) new tax is no worse, no more than a minor annoyance.
Of course if you believe, as the “prison planet” blogger does, that global warming is a hoax designed to take away our freedoms and bring back a kind of worldwide Babylonian empire, then you want to hold on to every cent you’ve got, and the rest of the world be damned, and nothing I say will persuade you otherwise. Even so, I hope you will at least question his math.
The prison planet blogger says the Tobin tax would be at a 2 percent rate (which, I guess,