Open letter signed by nearly 300 millionaires, economists, and politicians underscores the necessity for immediate action to avert extreme wealth disparity.
Urgent Plea for Wealth Taxation at G20 Summit:
Campaigners are urging developed and emerging economies to collaborate on increasing wealth taxes on the global elite at an upcoming G20 summit.
Open Letter Emphasizes Need for Wealth Tax:
In a pre-summit open letter addressed to the G20 members meeting in Delhi, a group comprising almost 300 millionaires, economists, and politicians emphasizes the pressing need to counteract extreme wealth that risks “undermining our shared future.”
Notable Figures Lend Their Support:
Notable signatories, including Abigail Disney, Brian Eno, and Richard Curtis, call on the G20 to replicate the unity they previously demonstrated in setting minimum tax levels for multinational companies, this time focusing on collective wealth taxation.
Divisions Amid Strong Public Support:
Despite the anticipated divisions among G20 members, the advocates for a wealth tax believe that leaders need to heed public sentiment. The letter argues that there are already numerous policy proposals on wealth taxation from esteemed economists. With public support evident and comprehensive strategies available, the primary requirement is political resolve.
Collaborating Organizations Behind the Initiative:
The message, orchestrated by entities like Patriotic Millionaires, the Institute for Policy Studies, and Oxfam, emphasizes that heightened wealth taxation would counter alarming income disparity levels.
Staggering Wealth Disparity:
The campaigners highlight that the collective wealth of individuals possessing over $50m has surged to $11.8tn, while a mere four cents per dollar in tax revenue is derived from wealth taxes.
UK’s Stance on Wealth Tax:
The UK’s finance minister, Jeremy Hunt, has ruled out the implementation of a wealth tax, a sentiment echoed by Rachel Reeves, the opposing finance spokesperson, who mentioned that a prospective Labour administration wouldn’t be endorsing one either.
Frustration Among Affluent Advocates:
Julia Davies, a renowned impact investor and an affiliate of the Patriotic Millionaires UK group, expressed her frustration, saying, “The glaring absence of political enthusiasm for levying a tax on considerable wealth in the UK emphasizes the need for international collaboration.
Global Endorsement for Wealth Tax:
Prominent figures endorsing this view include US Senator Bernie Sanders, ex-UN assembly president Maria Espinosa, and esteemed economists like Gabriel Zucman, Jayati Ghosh, Kate Raworth, Joe Stiglitz, Lucas Chancel, and Thomas Piketty.
Call for G20 Collective Action:
The letter directed at the G20 – a coalition comprising the G7 countries and other emerging economic powerhouses like China, India, Brazil, and Indonesia – urges for a unanimous decision to enhance taxes for the wealthy. The appeal also emphasizes halting tax evasion and unhealthy competition encouraged by the ultra-affluent.
Oxfam’s Take on the Issue:
Katy Chakrabortty, the chief of policy and advocacy at Oxfam, remarked, “The rising tide of supporters cannot be overlooked anymore. As the world stands at a pivotal point, the endorsement for equitable taxation to tackle the escalating living costs and climate challenges is resonating both among millionaires and the general populace. The moment has come for governments to step up.”
