A long-dormant proposal to tax financial transactions is back in political discussion after a Liberal-appointed senator suggested the idea could become reality.During a Senate budget debate, Sen. Lucie Moncion of Ontario floated the possibility of a 2% tax on share purchases, saying it could raise significant revenue from wealthy investors. “Let’s say you put a 2% tax on buying shares,” Moncion said. “You would get revenue from people who have more money than those who cannot buy shares. It’s an idea I’d like to hear your thoughts on.”Blacklock's Reporter sais Moncion emphasized her comments were hypothetical, but called the idea “food for thought” and noted the revenue potential. Her remarks came amid ongoing delays in the federal government’s 2025 budget, which has been postponed until a Fall Economic Statement is released..Sen. Elizabeth Marshall, of Newfoundland and Labrador, a former provincial auditor, responded with skepticism, warning that new taxes on capital markets could damage investment. “I’m not warm to that idea,” said Marshall. “We’re looking for more spending in Canada and if you start taxing that, I think it would probably have a very negative impact.”Marshall also criticized current fiscal practices, calling for reduced federal expenditures. “I think the government needs to put more effort into reducing expenditures,” she said. “The way this government spends and the way the previous government spent, I don’t have much hope that they’re going to reduce expenditures.”.The concept of a financial transaction tax — often referred to as the “Tobin Tax” — was first proposed by economist James Tobin in 1972. In Canada, former New Democrat MP Lorne Nystrom introduced a motion in 1999 to create such a tax in coordination with international partners. The motion passed in the House of Commons by a vote of 164 to 83 but was never implemented.A 2000 Library of Parliament report concluded that even a minimal rate could raise large amounts of money due to the scale of global financial markets.More recently, the Green Party included a 0.2% tax on financial trades in its 2025 election platform. The Parliamentary Budget Office estimated such a tax could generate more than $49 billion annually, using transaction volume data from various markets including stocks, bonds, and derivatives. The Green Party argued the measure would reduce speculative trading and provide funding for social, economic, and environmental programs.
