Tobin Tax
 |
Definition of 'Tobin Tax 'A means of taxing spot currency conversions that was originally suggested by American economist James Tobin (1918-2002). The Tobin tax was developed with the intention of penalizing short-term currency speculation, and to place a tax on all spot conversions of currency. Rather than a consumption tax paid by consumers, the Tobin tax was meant to apply to financial sector participants as a means of controlling the stability of a given country's currency. |
 |
Investopedia explains 'Tobin Tax 'The Tobin tax has been controversial since it was originally introduced in 1972 by James Tobin, recipient of the Nobel Memorial Prize in Economics in 1981. Opponents of the tax indicate it would eliminate any profit potential for currency markets. Proponents state that the tax would help stabilize currency and interest rates because many countries' central banks do not have the cash in reserve that would be needed to balance a currency selloff. |
Related Definitions
Articles Of Interest
-
Are Derivatives Safe For Retail Investors?
These vehicles have gotten a bad rap in the press. Find out whether they deserve it. -
Market Speculators: More Help Than Harm
Speculators often get a bad rap, but it's important to remember that they only observe trends, not manipulate them. -
Trading Gold And Silver Futures Contracts
If you are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities. -
How do speculators profit from options?
As a quick summary, options are financial derivatives that give their holders the right to buy or sell a specific asset by a specific time at a given price (strike price). There are two types ... -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
How To Deduct Your Job Search Expenses
With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ... -
Are IRS-Prepared Tax Returns The Solution To Our Tax Woes?
The government is considering letting the IRS do your taxes for you. While this may sound great, there are plenty of reasons why you may not want to trust the IRS to calculate your tax return. ... -
Approved: Paying Online Sales Tax
States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.
Free Annual Reports
