A Feasible Foreign Exchange Transactions Tax

Rodney Schmidt*
Research Associate
North-South Institute
55 Murray Street, Suite 200
Ottawa, Ontario, Canada
K1N 5M3
Fax: (613) 241-7435

Program Advisor
Vietnam Economic and Environment Management
International Development Research Centre
40 Nguyen Van Ngoc
Hanoi, Vietnam
Fax: (84-4) 766-0469
E-mail: veem@hn.vnn.vn

March 15, 1999

February 4, 1999
The second hour of debate on the Tobin tax motion was held in the House of Comons on Feb 3. The Bloc Quebecois has proposed that the motion be amended by removing the words "enact a tax on financial transactions" and replacing them with the following: "promote the implementation of a tax aimed at discouraging speculation on fluctuations in the exchange rate." The language is weaker but not seriously so, and if it brings Bloc support (44seats), is worthwhile.

My overall impression of the debate is that some MPs are ill-informed or are being deliberately misleading in their arguments. The taxes hurt  'average' Canadians" myth seems to be the favorite we must debunk as we argue in favour of the tax.

February 1, 1999

Citizen's Declarations are pouring in - thanks for sending and sharing them!  Note that the Halifax Intiative site (www. sierraclub.ca/national/halifax)  now has an automatic email sendback for those wishing to sign the Citizen's Declaration on line.

I have included text of two letters recently sent to MPs in this mailout and urge you to use them (if you wish) in your letterwriting to your MP.

The Canadian Labour Congress has just posted its "Put the Brakes on Currency Speculation" campaign on its homepage and from it you can fax your MP directly. Visit the Canadian Labour Congress site and click the FAX YOUR MP icon. Select the "Put the Brakes on Currency Speculation" campaign, type in your name and postal code, and a draft letter(which you can edit) to your MP will appear on your screen. Edit and send!