Global millionaires for being taxed at higher rates to reduce wealth inequality

More than 100 millionaires say current tax systems are “not fair” and increasing wealth tax would help resolve inequalities made dramatically worse by the Covid health crisis

Millionaires from around the world have signed an open letter asking governments to tax them at higher rates.

The letter was published online Wednesday, mid-way through Davos, the World Economic Forum’s annual meeting being held virtually this year.

The signatories of the letter, which was the result of a joint initiative from inequality advocacy groups Patriotic Millionaires, Millionaires for Humanity and TaxMeNow, said current tax systems were “not fair”.

“Most of us can say that, while the world has gone through an immense amount of suffering in the last two years, we have actually seen our wealth rise during the pandemic – yet few if any of us can honestly say that we pay our fair share in taxes.”

“The world – every country in it – must demand the rich pay their fair share” wrote millionaire signatories from the US, UK, Germany, Canada, Denmark, Austria, the Netherlands, Norway and Iran.

This comes as Oxfam on Wednesday released a report detailing how the pandemic has exacerbated wealth inequality around the world.  According to the report the unique circumstances of the pandemic have pushed an extra 160 million people into poverty, while the world’s 10 richest men have doubled their fortunes.

Tackling inequalities

“Wealth is just continuing to concentrate now in the hands of the few, and then it's leading to deeper societal problems,” UK signatory Gemma McGough, an entrepreneur and member of Patriotic Millionaires UK, told FRANCE 24.

An annual wealth tax applied to the world's richest would raise US $2.52 trillion a year, analysis by the Fight Inequality Alliance, Institute for Policy Studies, Oxfam, and Patriotic Millionaires found, with a graduated rate structure of 2% tax on wealth over $5 million; 3% on wealth over $50 million; 5% on wealth over $1 billion.

It estimated the funds would be sufficient to make enough vaccines for the whole world and deliver universal health care and social protection for all of the 3.6 billion citizens of low and lower middle-income countries, among other issues.

“If we don't tackle the huge inequalities, and the power and wealth that billionaires and millionaires have, we can't solve climate change [or make progress on] the feminist movement or the human rights movement. It's in the interest of all of us to push for quite a different future,” Jenny Ricks, Global Convenor at the Fight Inequality Alliance told FRANCE 24.

McGough added, “99% of people in the world saw their incomes fall during the pandemic and the cost of living is increasing. If you are in the 1%, then you look at your own situation and see it’s not the same - that’s not right. It's not fair. We know we are in a position to shoulder more of the burden.”

Drawing attention to the cause

Research from Credit Suisse found that the global number of millionaires rose to 56.1 million in 2020, an increase of 5.1 million in a year.

While only 100 millionaires signed the open letter, signatory Djaffar Shalchi, founder of Millionaires for Humanity, told FRANCE 24 it was a way to counter the narrative that taxing the wealthy hurts business development and damages the economy. “Millionaires have a unique role to play in advocating for wealth tax,” he said. “We want politicians to understand that not all millionaires agree with the policy of decreasing taxes for the rich.”

This is the third letter of its kind the group has sent, and high-profile signatories include Abigail Disney, grandniece of founder Walt Disney, and Nick Hanauer, who was an early investor in Amazon.

In a Twitter video, Disney was scathing about the Davos conference, where invitees typically include business leaders, senior politicians and billionaires. This year the theme of the conference is "working together to restore trust".

“I’ve been to Davos. It grossed me out. The idea that this many billionaires have to gather in a teeny, tiny place that regular folk can’t get into to discuss matters does not create trust,” Disney said.

Releasing the letter at the same time as the conference is an important way to raise awareness and stimulate discussion about wealth tax said Ricks. “It's not the 1% at Davos that have got the answers to the inequality crisis, it is the people who are facing those inequalities,” she told FRANCE 24.

SOURCE: AFP/FRANCE 24