Dean Zerbe, Contributor at Forbes wrote an article about President Obama's Jobs Bill and Taxes and asked the right quesiton: "What Does It All Mean For Business?"
He mentions that raising USD245 billion in taxes (if not more to pay for increased spending - a nonstarter for House Republicans) is not going to happen with just loophole closers.
Derek Kravitz, AP Economics Writers, thinks that economists show support for Obama job-growth plan.
Mark Zandi, chief economist at Moody's Analytics, estimated that the president's plan would boost economic growth by 2 percentage points, add 2 million jobs and reduce unemployment by a full percentage point next year compared with existing law.
According to the Basel based Bank for International Settlements Global foreign exchange market turnover was 20% higher in April 2010 than in April 2007, with average daily turnover of USD4.0 trillion compared to USD3.3 trillion.
A global Robin Hood Tax at 0.25% would generate a daily tax volume of ten billion US dollar that could be considered as a risk premium to insure the world against systemic risks!
This Tobin tax could compensate the rising costs that the downgrade could add, up to 0.7 of a percentage point, to U.S. Treasuries' yields, through increasing funding costs for public debt by some USD100 billion, according to SIFMA, a U.S. securities industry trade group.
The outstanding US debt of USD14.3 trillion is equivalent to less than four days of an average daily foreign exchange turnover of USD4.0 trillion!
The US has actually a population of 313,232,044 inhabitants, compared to a global population estimated at 6,928,198,253 people
At an equal share, according to the US's population, a Tobin transaction tax share of 4.52%, for the IRS, the US tax authorities, could generate an additional revenue every single day of over USD 450 million, at a Tobin tax rate of only 0.25%, which would amount to over USD 160 billion per year and it would take less than two years to finance these USD245 billion to finance President Obama's Jjob-growth plan!
But such a tax could also be useful to help the US to find more financial stability in a period of financial turmoil!
A Tobin transaction tax would mitigate the speculation risk that comes from excessive foreign exchange dealing!
It's time to implement a tax on the financial sector that has the power to raise hundreds of billions every year globally.
Not complicated. Just brilliant.
What do you think?
Could the introduction of a Tobin Transaction Tax Finance President Obama's Job-Growth Plan??Have a wonderful and prosperous time!
Best
- Lucas
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