VOLUME 8 | ISSUE 39

FAIR TAXATION—EVOKING THE LEGEND OF ROBIN HOODELEMENTARY RESOURCES

BACKGROUND INFORMATION

• Similar to the income tax citizens pay their governments on the money earned through employment, companies pay tax for the money they make through their business.

• Governments use tax money to pay for services like education and healthcare.

• Because they have operations in many different countries, some multinational companies hide the money they make in a country so they pay less taxes by “pro"t shifting”—transferring goods and money to their subsidiaries in other countries with lower tax rates, like Switzerland and the Cayman Islands. ese countries are sometimes referred to as “tax havens.”

• A 2010 study by Washington-based organization Global Financial Integrity (GFI) estimated that developing countries around the world lose as much as $160 billion in total every year because corporations are hiding pro"ts and not paying their fair share of taxes. GFI estimates that for every dollar African countries receive in aid, they lose ten dollars to corporate tax evasion and corruption.

• Oxfam International says that every billion dollars of lost tax money could: prevent famine by providing food for 11 million people in the drought-stricken Sahel region of Africa; pay 400,000 midwives every year to improve the health of pregnant mothers in sub-Saharan Africa; or buy 200 million mosquito nets to help prevent malaria.

• Organizations like Canadians for Tax Fairness are calling for international tax law reform to prevent corporate tax evasion.

• International organizations say billions of dollars could be raised to "ght poverty with a Financial Transaction Tax (FTT)—also known as a Robin Hood Tax. It is a small tax that is placed on every "nancial transaction, like trades of stocks and bonds. At the end of April, 2014, eleven European Union countries voted for an FTT that is expected to raise as much as $87 billion for development. Oxfam Canada predicts Canada could raise $700 million a year with a similar tax.

• At the 2010 G20 meeting in Toronto, European countries proposed an international FTT, but the proposal was blocked by the Canadian government.

e following activities are designed to stimulate a current events discussion. Generative in nature, these questions can be a launching point for additional assignments or research projects.

Teachers are encouraged to adapt these activities to meet the contextual needs of their classroom.

In some cases, reading the article with students may be appropriate, coupled with reviewing the information sheet to further explore the concepts and contexts being discussed. From here, teachers can select from the questions provided below. e activity is structured to introduce students to the issues, then allow them to explore and apply their learnings. Students are encouraged to further re$ect on the issues.

NOTE TO EDUCATORS

KEY TERMSIncome tax—When the government takes a percentage of the money you earn at a job.

Subsidiary—A company that is owned or controlled by a larger company.

Multinational—A company that does business in more than one country.

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Robin Hood has been immortalized as a hero who stole from the rich to give to the poor.

THEMES AND COURSE CONNECTIONS • emes: Poverty, Humanitarian Aid, Economy, Values and Ethics,

Global Issues

• Course Connections: Language, Social Studies, e Arts, Geography

MATERIALS • Paper and writing utensils

SPECIFIC EXPECTATIONS AND LEARNING GOALS Students will:

• Develop and express responses to issues and problems.

• Reassess their responses to issues on the basis of new information.

• Participate in active group work and class discussions.

• Communicate effectively in oral, visual or text form.

• Demonstrate the ability to think critically.

• Develop, express and defend a position on an issue.

MAP IT Have students locate the different countries mentioned in the article to gain an understanding of the international expanse of the issues.• Ghana• Zambia• Sub-Saharan Africa (all African countries fully or partially south of

the Sahara desert)• Switzerland

DISCUSS 1. What is income tax? Where does the money from income

taxes go? 2. e phrase “fair share” is used in the article to describe the

amount international business should pay in taxes, what is a fair share? How can that number be determined? Who should determine what amount a fair share is?

3. e article states that Marta Luttgrodt works 12 hours a day, seven days a week earning about $400 a month after taxes. Approximately, how much is Luttgrodt earning per hour after taxes?

4. What is a loophole? Who decides international tax rules?5. Explain the connection between corporate tax and

international aid made in the article. According to the estimates made in the article regarding corporate tax and international aid, do you think as many countries would need aid if there were stricter corporate tax structures in place? Why or why not.

6. Explain “pro"t-shifting.” What is a tax haven? Do businesses have a right to take advantage of these loopholes like pro"t-sharing and tax havens? Why or why not? Should businesses be taxed more?

7. What is the purpose of the Millennium Development Goals? What are some examples of the MDG goals? Why is progress stalling on the Millennium Development Goals? Who’s responsibility is it to work towards achieving the MDGs?

8. What is a recession? How is it affecting the Millennium Development Goals?

9. What are the suggestions to close corporate tax loopholes? What role does Canada play in international taxes? How can Canada help "x the loopholes?

10. Explain the Financial Transaction, or Robin Hood, Tax. Why is it known as the Robin Hood tax?

DIVE DEEPER Governments and politicians are often blamed for not doing the right thing or getting the job done properly. But being a politician is more difficult than it seems. e issue of taxes in particular is a hot button issue with voters. Trying to create international tax reform is additionally difficult due to the competing and opposing priorities country leaders bring to the table.

Have students take on the role of problem solvers. After sorting the class into groups of two to four, ask students to put together a campaign outlining a solution to issue of major international companies getting rich while citizens live in extreme poverty that often results on relying on international aid.

Groups should begin by outlining the issue and brainstorming possible students. Ask students to tackle the issue as one of the following groups: a politician, an organization speaking for international aid or a multinational business. Ask them to consider where there is a way for everyone to be happy?

Once the groups have selected a solution, instruct them to create a brief campaign to promote their solution. e campaign can consist of a series of Twitter tweets, Facebook posts, radio commercials, newspaper advertisements, etc. Suggest looking at political campaigns run in the past for research. Students should consider their target audience, the medium they are communicating with and the message they want to convey when preparing their campaign.

Once students have their campaigns ready, have them present to the rest of the class to share their ideas.

ADDITIONAL RESOURCES

Photo Credit: Roy Westlake/Gallo Images/Getty Images

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