Robin Hood tax

Aid organisation Oxfam Novib has launched a petition on its internet website and on Facebook for a 'Robin Hood Tax'. The campaign is part of an international call to introduce a tax on international financial transactions: such as shares, bonds, currencies and derivatives.

A 0.05 percent rate would yield some 200 billion euros. That money could be used to combat poverty, counteract the effects of climate change and maintain public sector services and jobs. In addition, the tax could be used to strengthen the world’s financial system.
 

Watch the Robin Hood Tax video

All across the world, the super rich are clamouring to be allowed to pay a ‘crisis’ tax. American millionaire Warren Buffett was the first in line and his appeal has been heeded in Europe. Wealthy Dutch citizens, however, are not reaching for their wallets.

The economic crisis has led to cuts in many countries. And it is mainly the poor who are bearing the brunt. Warren Buffett felt this was not fair. The rich should also help put their country’s books back on track, by paying extra tax, he suggested.

Calls for a 'crisis' tax have been echoed by Liliane Bettencourt, France’s richest woman. In Germany, a group of wealthy people are begging to be allowed to pay more money to the treasury. The same noises are being made in Italy by Ferrari boss Luca di Montezemolo. But in the Netherlands, the silence is deafening, as Dutch millionaires think they already pay enough tax.

Mad
Television producer Harry de Winter puts the sentiments many rich Dutch people have into words:

“I think there’s already a millionaire’s tax in the Netherlands, because we have a progressive tax system: the more you earn, the more you pay. And I think I already pay too much property tax. We don’t need a special tax for millionaires in the Netherlands. They are mad in America. The more you earn there, the less you pay.”

In the United States, 40 percent of the country’s capital is in the hands of 1 percent of the population. “If that 1 percent, which hardly pays any tax says: we are going to pay a normal tax rate (20 or 30 percent), then it’s more than just a gesture. It really helps.”

Professor Jaap Koelewijn of Nyenrode Business University understands the point of view of the Dutch millionaires:

“Taxes are high in the Netherlands. So millionaires are less willing to do something. In addition, the distribution of wealth in the Netherlands is much better than in the United States or the United Kingdom.”

Tax havens
The top rate of tax in the Netherlands is 52 percent, and 1.2 percent for property tax. That is a lot, much higher than in the United States or France. If the rich are taxed more, they may take their capital abroad. Because that is a huge problem: many captains of industry move their money to tax havens.

Henk Willem Smits of Dutch business magazine Quote:

“The point is of course that many of the richest people do not pay tax. It would be really be something if you could get them to keep their company in their own country and pay taxes there rather than running off to St. Maarten, Luxembourg or Monaco. You could even lower the rates, as long as you can get them to pay.”

Mr Smits points out that Warren Buffett’s company Berkshire Hathaway is located in Bermuda. “It would be a good idea for him to move back to the United States and pay tax there.” Even members of the Royal family move their money to Jersey, Mr Smits says. “That is a real den of bandits, a respectable family wouldn’t want to be seen there.”

Setting an example
  There are wealthy Dutch people who think the rich should contribute more. Entrepreneur Harry Mens thinks millionaires over  the age of 65 should give up their pension money. Jaap Koelewijn is hesitant:

“Millionaires have paid their premiums like everybody else, so it is fair that they should receive a pension after reaching 65. But it is a nice gesture. I hope Harry Mens sets an example.”