[PEN-L:1855] Soros Questions Tobin Tax

[Michael Eisenscher <meisenscher@xxxxxxx>]

  NDP MP Lorne Nystrom has introduced a motion
  in Parliament, M-239, that urges the Government
  of Canada to implement a Tobin Tax.

  That motion will be voted on in February, 1999

  George Soros indicates below that a Tobin Tax
  may not be effective.
==================================
Date: Tue, 22 Dec 1998 19:05:31 -0500
To: bobolsen@xxxxxx
From: paul rodgers <centaur1@xxxxxxxxxxx>
Subject: Re: Tobin Tax Canada Feb 1999 (fwd)

Date: Tue, 22 Dec 1998 09:00:44 -0500 (EST)
From: Neva Goodwin <ngoodwin@xxxxxxxxxxxxxxxxx>
Subject: Re: Tobin Tax Canada Feb 1999 (fwd)
To: Michael Gurstein <mgurst@xxxxxxxxxxxxxxx>
        UN Reform <UNReform@xxxxxxxxxxxx>,
        futurework <futurework@xxxxxxxxxxxxxxxxxxxxx>

A comment on the Tobin tax, which I have always thought was a
great idea, and I hope it still is -- but I was recently at a
talk by George Soros in which someone asked him about this.
He replied that he had intended to push it in his new book, but
that, after looking into it, he concluded that it was no longer
workable, because there are many novel forms of currency
trading and international transactions -- through new instruments
that have just been invented in the last few years -- and many of
these cannot be monitored or controlled by governments.  A Tobin
tax, he said, would just create a perverse tax-avoidence incentive
for people to do their transacting through these instruments.

        I don't know enough about financial markets to be able to
assess this conclusion (I don't even know the names of many of
these new instruments!) -- I'd be interested in reactions from
those who are more up on this.  I fear that Soros opinion is one
that has to be taken pretty seriously; he's had more experience
in these areas than almost anyone, and, though he certainly has
mixed motives (the desire for profits continues to burn strong
in him), I believe that his wish to contribute to a world of
sanity and freedom is also strong.

Neva Goodwin, Co-director
Global Development And Enviroment Institute
NGoodwin@xxxxxxxxx
     web address: http://www.tufts.edu/gdae
street address:
G-DAE, Cabot Center
Tufts University
Medford, MA 02155



   .............................................
   Bob Olsen, Toronto            bobolsen@xxxxxx
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