The Currency Transactions Tax

Re-visiting research begun a decade ago, we examine the design and implementation of a modern currency transaction tax, the original financial transaction or Tobin tax. We show how a feasible CTT can be collected, and we estimate CTT revenues and market impact based on alternative tax rates. We survey the potential uses for these new revenues, and propose allocation mechanisms. Finally, we estimate the new and additional resources that would likely become available for financing the provision of global public goods.