Some Interesting Facts

Over $1.5 trillion moves daily through currency exchange markets around the world, and over 85% of those transactions are of a speculative nature, where traders bet on whether currency values and interest rates will move up or down. 
 

Such volume and volatility disrupts the ability of nations to establish equitable and just economic policies; to intervene to protect their own currencies; and to provide support for needed social and environmental programs.

 Recent financial crises and currency devaluations tend to exacerbate existing problems such as price increases, higher unemployment, plant closures, social unrest and human rights violations; and to burden indigenous, poor and middle-income populations most heavily. 
 

Excessive speculation could be curbed by a very small tax of between 0.1% and 0.25% on each cross-border currency transaction (as proposed by Nobel prize-winning economist James Tobin -- "Tobin Tax"); and such a tax would reduce incentives for overnight speculation while remaining small enough to leave longer-term investments intact.
 

Revenues from a Tobin Tax, projected at between $150 and $300 billion a year, would provide the resources urgently needed to wipe out extreme poverty, provide basic social services and mitigate environmental destruction globally; and collection, enforcement and allocation aspects are considered to be economically feasible.

Governments around the world must immediately cooperate to establish Tobin-style taxes on foreign currency exchange market transactions, collect and distribute in a fully transparent and accountable manner, the revenue dedicated to basic and urgent human and environmental needs and to ecologically sustaine jobs within less-developed countries. 

(1)The Tobin Tax Update is a monthly newsletter of the Tobin Tax Initiative USA. The Tobin Tax is a proposal to tax cross-border currency transactions, for the purpose of reining in market volume and volatility; restoring national sovereignty over monetary policy; and raising substantial revenue for urgent global environmental and human needs. Tobin Tax Initiative USA ... Ruthanne Cecil, Project Director and Newsletter Editor see our website at email Tobin Tax Initiative USA, International Innovative Revenue Project, Center for Environmental Economic Development, P.O. Box 4167, Arcata, CA 95518-4167 USA TEL (707) 822-8347 FAX (707) 822-4457 Building Local Support for Global Solutions...