Tobin tax for Iceland?

A group of Icelandic coalition and opposition MPs are proposing the introduction of a so-called ‘Tobin’ tax on financial transactions in Iceland.

The draft financial resolution urges the Icelandic Finance Minister to support an international currency-transaction tax and to set up a working group to look into introducing such in Iceland.

The proposed timeframe is short, the aim being to have an Icelandic Tobin tax in place by 1 January 2017.

The text of the draft resolution reads:

“Tobin [James Tobin, 1918-2002] considered that a tax on financial transactions – particular short-term actions – could be a useful way of dealing with the consequences of speculation in national economies. He also saw the tax as a tenable way of raising money for various pressing public projects.”