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Senior Contributor

Tobin Tax?

Would it be any good?  I haven`t seen anyone post about it before. Sounds like if used at a low rate per transaction the consumer would be hit for only a few bucks, but Wall Street would get socked hard because of the many trades. I suppose they`d find a loop hole.  

1 Reply
Veteran Advisor

Re: Tobin Tax?

I believe the 'Tobin Tax' is a VAT by another name.

Many countries already have a VAT but some of the lowest rates I know of are like Canada's 5% rate.

Our Goods and Services Tax (GST) is not levied on groceries and some other items such as childrens clothes. Farmers are able to reclaim much of the tax paid on agriculture inputs.

The claim is made that there is less oportunity to cheat on a true VAT than a sales tax.