$207 Million Per Day in Share Trading And No One’s Thinking About A Financial Transactions Tax. Seriously?

The NZX has reported that average trades increased in value in October by 56% to an eye-watering $207 million – per day.

That is $207 million worth of share transactions each day that no GST is paid on. For reasons that have never been made entirely clear, financial services, unlike other goods and services, are exempt from GST.

The government claims it is strapped for cash, especially when it comes to spending on essential services such as health, education, infrastructure, and social welfare. With the record-breaking turnover on the NZX, surely it is time to look at taxing financial transactions. Continue reading

A big day for a tiny tax on 22 June

Wednesday 22 June 2011 has been declared a “big day for a tiny tax”, highlighting the need for a worldwide financial transactions tax to curb financial speculation and provide the necessary funds to eradicate poverty and protect the environment.  Continue reading

Hone Heke meets Robin Hood? Financial transactions tax gains new support

Alliance Party Co-Leader and GST off Food Tax Justice campaign co-organiser Kay Murray says the new Mana Party’s Hone Heke financial transactions tax (FTT) is a great idea.

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We need a Robin Hood tax – not a "robbin' the people" tax

The Alliance Party is supporting a new campaign to introduce a tax on banks and finance institutions that is creating waves in the UK.

The new campaign is called the “Robin Hood Tax” and proposes a financial transactions tax that is about “turning a crisis for bankers into an opportunity for the world.”

Alliance Party spokesperson Victor Billot says the Alliance is advocating a Financial Transactions Tax for New Zealand that is basically the same as the Robin Hood tax.

A Financial Transactions Tax would be charged on all withdrawals or purchases at a rate of 0.02 % or 2 cents per $100. This would have no impact on ordinary people but only on large financial transactions.

The Financial Transactions Tax or “Robin Hood tax” could contribute towards the phasing out of GST, a regressive tax that hits ordinary people hard.

Mr Billot says the Robin Hood tax is the way ahead, not John Key’s proposed increase in GST which is about “robbin’ the people.”

He says that it’s not surprising given John Key’s background in the corporate finance sector in the UK, which played a major role in the global economic crisis, that he prefers taxes to be paid by the majority while letting a small minority dodge their responsibilities.

Mr Billot says it is repulsive that John Key’s plan to cut the top rate of income tax could see the Prime Minister get potentially hundreds of dollars extra a week, directly subsidized by rises in GST which would hit families hard on basics like bread and fresh vegetables in supermarkets.