what is the tobin tax 
the tobin tax is a tax levied on spot currency conversions with the intention of disincentivizing short term currency speculation named after economist james tobin in contrast to a consumption tax paid by consumers the tobin tax is meant to apply to financial sector participants as a means of controlling the stability of a given country s currency it is more formally known today as a financial transactions tax ftt or less formally a robin hood tax understanding the tobin tax