Feedback about the Robin Hood Tax

Published February 13, 2010

When I posted a video on YouTube the other day in response to the ‘Robin Hood Tax’ video (see below) – I had no idea how many comments I would get or how good they would be. Rather than summarise it – here is the full thread and my responses.

Did these banks really think (like oil companies) that they are ‘too big to fail’? Well the past few years of ‘bad decision making’ has proved that they can and DID fail and fail they did. Mervyn King – Governor of the Bank of England, while warning banks that there must be some sort of ‘reform’, dismissed any form of tax on bank transactions. That is easy to say for a man who hasn’t got a clue about life in the real world.

The problem with Mervyn King and the politicians (etc) – they talk about ‘needs to be a reform’ and ‘we must change this or that’ but that seems to be all they do – talk! And then go have a big posh lunch at taxpayers expense.

Anyway – without a rant about the social divide… onto the Robin Hood Tax.

Firstly: The Robin Hood Tax Video

And just to clarify a point or two:

The proposed ‘Robin Hood Tax’ is on transactions between banks, not on consumer transactions. The whole point of this campaign is to raise money to help people and to benefit society – and to stop cowboy banking.

There’s been a couple of hundred comments on the original video so far, including:

Brilliant idea – brilliantly executed.
Good work!!!! Let’s spread the word!!!!!
I totally understand what it is, and you totally don’t understand why it won’t be passed down to you & me.
How about the rich, fat cat celebrities give more of their own money & stop taking ours!!!
dance4life supports the Robin Hood Tax Campaign… !
What are we waiting for? I’m off to email my MP and I’ll include the link!

The conversation in response to the original video actually stirred up a lot of emotions in different views. Interesting how many people have such diverse thoughts on this subject.

My Two-Pence Worth

I added a video response along with a text response (it was recorded via my webcam so apologies for the lack of quality).

Negative Feedback from the USA

After sharing my response on a couple of websites I got flamed about it by a couple of people in the US and I started to question myself – duh – but then I read a few more comments, like:

Love it! Couldn’t have put it better myself.
YES! This tax needs to be taken seriously and considered. As things are now there is HUGE divide between the rich and poor. 99% of bankers and politicians inherit their lifestyle and jobs and do not know what it is like to be a normal, tax paying member of society. Of course they will argue it but it NEEDS to be done. This is genius. I can’t believe it has taken so long.
Thank God, are we suddenly waking up to the ills of consumerism and capitalism? we have to speak up for those without a voice, the poor will not be silenced. As Gill Scott Heron once said, ‘The revolution will not be televised’ Peace brother!
A transaction tax works because banks will still trade just as much when there is profit in it for themselves or their client. The tax is at such a low threshold that any profits on the transaction will vastly outweigh the transaction charge. Also, it doesn’t matter if banks pass on the charge to their client, the money that has been invested will still make huge profits as long as it is a good investment.

But then – I got hit with some ‘facts’ that made me wonder…

According to the robin hood tax site :"Banking is the most profitable industry in the world, with profits of $788 billion in 2006,"
They go on to say:
"Although 0.05% is a tiny tax, $400 billion is a substantial amount."
So the tax is on individual transactions, adding up to over 50% of the profits of all banks being taxed away, since every time a bank does a transaction it’ll lose more money.
I don’t think I would describe a 50% tax on profits as ‘tiny’!

Wow and OMG.

So banks are working on a profit margin of only 0.1% in total? If that is so then you have a darn good point.

You know, I hadn’t read it that way but I guess that is because I had no idea that the banking industry profited to the tune of $788 Billion (in 2006) and nor had I worked out that this equates to just 0.1% and therefore the 0.05 ‘Robin Hood Tax’ would take half of that profit.

It makes me wonder though; do the banks profit to the measly tune of only 0.1%? Fe businesses would survive at such a low gross profit margin – few, in fact, would even bother trading. But I suppose, based on the gazillions of transactions that are guaranteed to take place, banks can afford to work on such small numbers because the profit will be there.

I don’t know what to think. I like the idea of banks ‘paying back’ the money that was used to bail them out and, even if it did come from their profits, let’s face it; they will still be profiting to the mighty sum of about half a trillion dollars per year.

And look at all the good the money could be doing. No organisation (or groups of organisations) need $400,000,000,000 profit or $500,000,000,000 profit! Especially when they were bailed out by taxpayers money to the tune of hundreds of billions of dollars.

But banks support so much other business.

I know. But isn’t it frustrating when banks dropped a massive bollock over the past few years and didn’t go out of business? They got all the cuddles and loving from the government and stayed on their feet while each and every one of us, each and every small business and every company that relied on the banks’ services, paid the price.

It was harder for Mr Joe Average to get a loan – even if he could clearly afford the repayments.
Mr and Mrs Joe Average couldn’t get the mortgage they’d been previously offered and had to miss out on buying their new home – new home buyers didn’t stand a chance.
The knock on effect was a massive one for all of us – many lost their jobs and many had to close the business doors completely.

While: The banks got on with business. They continue to shell out money on lavish events. They continue to pay huge sums to sponsor sports. And the bog kahunas at the top still get massive bonuses…

Bonuses – in times of crisis!

Is that the nearest thing to bullshit we ever ever did see? So let me get this straight. I owe loads of money to my bank, my credit card, my mortgage company and everyone I know but rather than show any remorse and before I even contemplate repaying any of them for their handouts – I’m going to buy a season ticket to watch football, go on a Caribbean cruise, through a massive party and buy myself a chauffer driver limo!
Should banks pay! Too darn right they should.

Oh but they will lose billions of their profit.

Hey! If you go bankrupt – which is what the banks virtually did – the bankruptcy court will monitor your earnings for years and years into the future and, if you earn shed loads of money, what will you be legally (and morally) obligated to do with the lions share of it?

PAY IT BACK!

Hey – I could be talking a load of crap myself – I’m not a banker or an international stock broker and I haven’t got a clue what these people do – but I do know I’m entitled to my opinion and that is; When the banks start earning a profit they should do what anyone with a debt (and a conscience) should do…

Do I think it will happen? Not for a second.