The Robin Hood Tax – Summary

Business Tax Reading Week Notes The redbreast Hood Tax * The idea behind the RHT is to generate hundreds of billions of dollars * That money could be used to kick-start the US economy and get America back on its feet * The RHT = 0. 5% task income on Wall Street transactions * Benefits * It wint affect the vast majority of Ameri stooges * Its easy to practice * Its tough to evade * It taxationes those who are to blame for the global monetary crisis, rather than the average American * It allow for help limit risk-free speculation that threatens financial stability The RHT is seen as justified as the banks can afford it * Its not a tax ON the bulk, its a tax FOR the people * It will be implemented using a Financial Speculation (or Transaction) Tax (FST/FTT) * The FST is a small tax of less than half a percent on slynesss in derivatives, stocks, bonds and contrasted currency * With an FTT, a small percent (between 0. 005% and 0. 5%) of the value of the trade is collected in t ax revenue The tax will dissuade the most risky transactions and prevent some of the gambling which helped trigger the financial crisis * Why is the RHT needed? The financial crisis has left a ample hole in the USs public finances and this necessarily to be filled. The money raised will generate jobs and strengthen public services * The money can in any case be used to parentage new Green projects to help curb global climate pitch * Disadvantages The bind is incredibly biased so it downplays this doom the tax will affect regular investors as well which could discourage normal people from investing * The tax will affect the value of pension funds, perhaps discouraging trading which would see the value of pensions of many normal Americans fall * Banks may just past the cost of this tax onto the consumer * The affected companies may just move their business offshore or start trying to avoid other types of taxes * The tax could alter dealing between US firms and other foreig n firms.For example, foreign firms will be less likely to invest in the US markets * Overall that article was disgustingly bias but it does make a good point of taxing those who have the money and those who have put America (and the end of the world) in the global financial mess its currently in * The RHT is also sometimes incorrectly called the Tobin Tax. The Tobin Tax is basically the RHT except it focuses alone on taxing financial taxation between countries to shorten quick foreign investmentPAYE System Benefits Disadvantages Simple Lack of accuracy Provides real-time data to the authorities Reliance on Tax codes Unavoidable No P45 take in rock-bottom the tax forms for employees Does not include Benefits in Kind (BIK) No bad debt HMRC mistakes Carbon Emissions Trading Scheme Benefits Disadvantages Incentives for businesses to become environmentally social How many permits do you issue? What is the upper limit of pollution? Who decides? Reduces nose candy emissio ns Low emission companies will have no incentive to reduce emissions further Tax revenue for government Complicated carcass Incentivises businesses to run into for more environmentally friendly fuel sources innovation Inconsistent system Higher cost for businesses passed onto consumers? UK bathtub System Benefits Disadvantages Difficult to avoid dearly-won to implement Simple Users must be tax savvy bath is transparent Regressive taxPrice does not increase when bathing tub is added VAT is inflationary Fairness Huge tax revenue for government VAT may be selectively applied Cheap admin costs for HMRC More efficient tool for macroeconomic policy than income taxes VAT aerated on sale VAT charged on sale VAT paying on purchases VAT paid on purchases VAT cod VAT Due Input VAT Input VAT product VAT Output VAT Exempt Zero rated 0% Reduced rated 5% Standard Rated 20% Financial services Cakes Energy economy materials that are permanently installed (e. . loft insulation) Too much to list damages Basic food Mobility aids for the elderly Betting & Gambling first aid Nicotine patches + gum Education Books Sanitary protection products Burials/cremations Childrens clothing Fuels Public transport Protective equipment e. g. baby car seats Books + Newspapers The emerge is taxable Can reclaim ALL input tax paid The supply is taxable Can reclaim ALL input tax paid