A tax on the world

The international do-gooders are starting to whisper the T word again. The concept of a world tax came up again at the most recent Davos get-together. [Side track-- as you can see by the picture, Davos is beautiful, but this group is trying to save the world. So, wouldn't it send a better message to hold the meetings in say Darfur or Bangladesh? They could set up a bunch of tents..]

Anyway, Congressman Ron Paul is not happy:

The "Tobin tax," named after the Yale professor who proposed it, would be imposed on all worldwide currency transactions. Such a tax could prove quite lucrative for the UN, given the vast amount of currency that trades hands at certain times. It also might be a politically acceptable starting point, because most average people do not engage in cross-border currency transactions. A dangerous precedent would be set, however: the idea that the UN possesses legitimate taxing authority to fund its operations.

To be fair, Tobin felt misunderstood, especially after the anti-globalization knuckleheads took over his cause. They thought the Tobin Tax was a Robin-Hood scheme, yet Tobin only suggested it as a means to stop wild currency speculation, the kind that got guys like George Soros rich (read the Der Speigel interview if you would enjoy seeing a democrat economist thoroughly take apart a neo-socialist).

Several world tax ideas have been put forth, such as a carbon tax to offset global warming costs, a Tobin-like currency transaction tax, and even a world lottery (imagine that jackpot). On the surface they don't really seem so bad, but the problem is that nobody can figure out how to administer such a thing.

As Paul says, the scary part would be giving the UN taxing authority. Such a move would have a literal spider web of ramifications, not the least being national sovereignty. Money is power, especially in the hands of taxing authorities. Give this power to the UN and it could easily devolve into another Oil for Food Program, except in reverse.

But Congressman Paul can chill for now, because the idea doesn't stand a chance in the short term. Surely it will come eventually, though. Global warming, poverty, AIDS and the other bugaboos aren't going away soon, and neither are the liberals who think throwing other people's money at problems always makes them better. I just hope I'm not around to see it. There are better ways to fix the world, starting with democratic change.