Erasing poverty by Basic Income Guarantee based on Tobin-tax

by Ole A. Seifert, 
first time posted March 9, 2010 at iPeace/edited february 2011

 Financing a basic income system, seems always as a big obstacle, as no one wants more taxes though some models estimate that this is possible through changing the income taxes just slightly. This varies offcourse from nation to nation.

 

Nobel prize winner James Tobin, economics 1981, had an idea about taxing foreign financial exchange transactions, known as the Tobin tax. Discussed lately in political spheres, it is suggested set at 0,05%. As minimal this seems, it actually would generate a lot of money. Beside the exclusion and savings thereby of unemployment money, pensions etc and the enourmous moneytaking of organizing these, this Tobin-tax would probably pay yhe rest and still leave money for other projects.

 

The Tobin-tax is discussed widely lately, at G8, G20 and World Economic Forum, Davos (2010) . It is extremly important that we don´t allow the IMF to swallow all the money generated by an eventually Tobin-taxation!

 

With a Tobin tax of 0.05% as it is suggested and debated by the G20, this is equivalent to $ 100 billion PR. TODAY. Or roughly € 3800 per capita globally anually. Personally, I believe this tax could well have been set much higher, twice at least. 

 

Tobin mentioned a rate at 0.5% in 2001, that is equivalent to € 38,016 per capita. Taking a height of ATTACs model of 1 / 3 to climate change, 1 / 3 to “financial buffer” and 1 / 3 to poverty reduction and use Basic Income Guarantee as such, it is € 12,672 per capita GLOBAL. It may sound as a small amount in a Norwegian context, but, adjusted by the cost of living in each country, plus the resources and money saved by erasing inefficiently and expensive social security schemes, pensions schemes etc., it might be more than enough to finance a global Basic Income Guarantee. Otherwise I see no problems to steal a bit from the defense budgets …

 

On the issue Tobin tax and how to use it, WE can be  the critical mass! Or the creater of this critical mass group. If this is an issue for debate on enough websites as well as the in ordinary papers, the polticians will eventually notice it and dare to consider the idea. 

 

 

Basic income, from Wikipedia, the free encyclopedia:

A basic income is a proposed system of social security, that periodically provides each citizen with a sum of money that is sufficient to live on. Except for citizenship, a basic income is entirely unconditional. Furthermore, there is no means test; the richest as well as the poorest citizens would receive it.

A basic income is often proposed in the form of a citizen’s dividend (a transfer) or a negative income tax (a guarantee). A basic income less than the social minimum is referred to as a partial basic income. A worldwide basic income, typically including income redistribution between nations, is known as a global basic income.

The proposal is a specific form of guaranteed minimum income, which is normally conditional and subject to a means test.

 

 

I have allready launched this idea on several other websites and -discussions.

Join a  Basic Income Guarantee-group now and promote the idea where ever you can.

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