What is Tobin Tax

Taxes cannot be denied in order to prevent financial crises and economic crises. In times of crisis, it is sometimes possible to intervene in these periods by decreasing the existing tax rates and sometimes by applying new taxes. The Robin Hood tax is based on the idea of giving it to the poor. According to this idea, the financial sector will be taxed in times of crisis and the tax burden that countries have to bear will be reduced. Moreover, the important point here is related to the usage area of the income derived from taxation of the financial sector. These taxes will be transferred directly to the public (i.e., to the people who suffer from the crisis). Thus, the idea of transferring from the rich to the poor will take place. In this chapter, the applicability of Robin Hood tax will be determined by considering the main features of the tax, and the tax will be examined before the social state principle. In this direction, the superior aspects of the said tax will be determined, and some suggestions will be made.