The Tobin Tax is a tax named after its inventor , James Tobin ( a Nobel Laureat ) in 1972 .
The main idea was at first to tax every currency transactions in order to counter short run speculations around currencies , that usually lead to unfair competition .
However , in our days , the tax idea was modified . It is not the currency fluctuations that would be taxed but financial transactions (stocks, derivatives (including the famous’ credit default swaps “, CDS) and high frequency . The percentage of this tax is only about 0,1% , but when we know the huge amount of capital circulating , it does represent a lot .
The Tobin Tax would , for the countries part of the project , be the same . The small percentage collected would then be handed to the IMF . Knowing the importance of the IMF in the world economy , especially its help to poorer countries , it could be of a great use . It would therefore assist development in those countries , without the direct intervention of the government .
The Tobin Tax has faced many critics , and this is why it still hasn`t been officially operating , eventhough some countries did sign ( 11 countries in Europe ).
Sources :
http://www.lefigaro.fr/conjoncture/2013/01/22/20002-20130122ARTFIG00537-une-taxe-tobin-dans-onze-pays-europeens.php