The Green Party supports the European Union’s proposed financial transaction tax, but urges the European Commission to consider localizing distribution of funding to help member nations make sustainable alterations to their economies.
The proposed financial transaction tax would impose a flat levy of 0.1% on all interstate shares and bonds transactions and 0.01% on all derivatives trading beginning in January 2014.
Green Party London Assembly Member Jenny Jones said:
“It would involve a very small tax on the value of every financial transaction between financial institutions worldwide. Globally this tax has the potential to raise as much asÂ Â£250 billion, as well as help stabilize the financial markets.’”
Revenue generated during interstate transactions will be split equitably between countries after its implementation, provided both countries have ratified the proposal. Although the United Kingdom has refused to sign up to the EU’s proposal as of yet, British businesses will still be made to pay the levy, leaving the signees to garner all revenue generated from the tax.
The Green Party supports a financial transaction tax of 0.05% but believe that money raised by such a levy would be far better used domestically. Furthermore, subsidizing European debt is a short-term fix for a long-term problem, and the financial transaction tax raises money that could be used domestically on the green economy, clean energy, or essential services like schools and hospitals.
Jenny Jones continued:
“The Tobin Tax is a perfect way of taking a tiny unnoticeable part of every financial transaction and passing it to climate change mitigation measures and to create worldwide sustainable development. The British Government’s reluctance on this issue panders to bankers, who have so successfully robbed our system and brought our ill advised free trade economy to virtual stagnation.”