The idea of a tax on currency transactions has been around for nearly 40 years, but recently it has gained momentum as a mechanism to raise funds for development aid for poor nations:

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PARIS, Sept 1 (Reuters) - A group of 60 nations, including France, Britain and Japan, will propose at the U.N. this month that a tax be introduced on international currency transactions to raise funds for development aid, ministers said on Wednesday.

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Speaking after a meeting in Paris, French Foreign Minister Bernard Kouchner said the group had agreed a common position for the United Nations Millenium Objectives summit on Sept. 21.

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Ministers estimated the tax could raise as much as $35 billion a year for development aid.

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“For every 1,000 euros the tax we are suggesting will bring 5 cents,” Kouchner told reporters. “It’s not a lot, but enough to get things going.”

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How such a tax would be implemented that would give a UN agency or some new international agency the authority to collect the funds -- whether by treaty or international agreement -- would raise legal issues in many countries.