To operate a global tax, don't you require a global government?
WASHINGTON (Reuters) - Any tax imposed on financial transactions would have to take effect internationally to keep Wall Street jobs and related business from moving overseas, U.S. House of Representatives Speaker Nancy Pelosi said on Thursday.
"It would have to be an international rule, not just a U.S. rule," Pelosi said at a news conference. "We couldn't do it alone, we'd have to do it as an international initiative."
Several House Democrats have proposed a Wall Street tax to pay for job-creating legislation they plan to pass in December. The tax, which could raise $150 billion per year, would tap into widespread public outrage at Wall Street in the wake of the financial crisis.
Of course, this had its genesis with Socialist International's Gordon Brown, now British PM, and Nancy Pelosi concedes there is growing support for it in the US
"It hasn't been developed to a high priority, but it has substantial currency in our caucus," Pelosi said.
Britain urged other governments earlier this month to consider a bank tax as a way to fund future bailouts, and France and Germany have also called for a bank tax. The International Monetary Fund is studying the idea.
That was back mid November. This week Pelosi had substantially pushed the idea forward:
Pelosi Endorses 'Global' Tax on Stocks, Bonds, and other Financial Transactions
Monday, December 07, 2009
By Matt Cover, Staff Writer

House Majority Leader Steny Hoyer and House Speaker Nancy Pelosi arrive for a press conference after House passage of the health care reform bill at the U.S. Capitol on Saturday, Nov. 7, 2009. (AP Photo/J. David Ake)
(CNSNews.com) – House Speaker Nancy Pelosi (D-Calif.) endorsed the idea of a "global" tax on stock trades and other financial transactions, saying the estimated $150 billion in annual revenue from such a tax [in the US alone] could be used to help fund more stimulus spending…
…"The fact is, what we are talking about is a global transaction [tax]," she said, "something that we would do in conjunction with other G nations, whether it is G8, G20, whatever the current G number is. Because it is really a source of revenue that has really minimal impact on the transaction, but a tremendous impact on helping us meet our needs."
Taken on its own, maybe it's nothing [yeah, right]. But taken with this, perhaps it fits the overall jigsaw starting to come together…
For the record, here's the salient page from my book Air Con quoting a United Nations Development Program report from 1994:
"We must seek a new role for the United Nations so that it can begin to meet humanity's agenda not only for peace but also for development.
"There must be a 'New World Social Charter' where the world will redistribute wealth as it cannot survive one-quarter rich and three-quarters poor, and where the UN must become the principal custodian of global human security and help with basic education, healthcare, immunization, and family planning," states the report.
"A major restructuring of the world's income distribution, production and consumption patterns may therefore be a necessary precondition for any viable strategy for sustainable human development."
To fund this grand idea of world government requires money, but the UNDP (which as of April 21 2009 is being run for the first time by a political leader, in the form of NZ's globalisation powerhouse Helen Clark) had that sussed as well:
"Global taxation may become necessary in any case to achieve the goals of global human security. Some of the promising new sourcesinclude tradable permits for global pollution, [my emphasis] a global tax on non-renewable energy, demilitarization funds and a small transaction tax on speculative international movements of foreign exchange funds."
I know I'm being as subtle as a sledgehammer in a china shop, but follow me here for a moment. The year was 1994, and some kind of global tax on pollution emissions was already being mooted – not to save the planet from pollution but to fund the United Nations dream of governing the world.
Elaborating further on the funding options, the report notes:
"A second logical source of funds for a global response to global threats is a set of fees on globally important transactions or polluting emissions. This is probably some way off, but even at this stage it is worth considering some of the more promising options, two of which are discussed in chapter 4.
"One is a tax on the international movements of speculative capital suggested by James Tobin, winner of the Nobel Prize for Economics (special contribution, p. 70). Tobin suggests a tax rate of 0.5% on such transactions, but even a tax of 0.05% during 1995-2000 could raise $150 billion a year. Such a tax would be largely invisible and totally non-discriminatory."
It is worth noting that at 0.5%, the transaction tax would raise US$1.5 trillion a year in 1994 terms for the United Nations, or 150 times the amount of its 1994 budget of $10 billion.
In 2000, Boston Globe editor and global warming believer Ross Gelbspan delivered a speech also calling on introduction of the Tobin Tax:356
"Finally, I think we need to use a tax on international currency transactions to finance the transfer of climate-friendly technologies to the developing world. Virtually all developing countries would love to solar; virtually none can afford it. The currency transaction tax was conceived by Dr. James Tobin, a Nobel Prize-winning economist at Yale, as a way to stabilize volatile capital flows."
Spookily, and entirely 'coincidentally' no doubt, there is talk in 2009 of the Obama administration of introducing the Tobin Tax as a result of the financial market meltdown. The President's key economics advisers on the stimulus package are disciples of Tobin's ideas.
"After a three-decade run," reported Bloomberg357 in February, "the free-market philosophies of Friedman that shaped U.S. policy are being eclipsed by the pro- government ideas of Tobin, the late Yale economist and Nobel laureate who brought John Maynard Keynes into the modern era."
Not bad foreshadowing from the UN Development Programme 15 years ago. Another prediction on the money was carbon taxes:
"Another [option] is a global tax on energy: a tax of $1 on each barrel of oil (and its equivalent on coal) during 1995-2000 would yield around US$66 billion a year," said the UN report …
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