Halve the number of billionaires by 2030 and then ” abolish “ in the long term: on the occasion of the World Economic Forum which opens on Monday January 16, the NGO Oxfam hits hard on the great fortunes, figures and tax proposals in support
“Every billionaire represents a failure of public policy”, writes the international organization in its annual report on inequalitiesat the start of a week of exchanges between economic and political elites in the Swiss ski resort of Davos. “Economic inequalities have reached extreme and dangerous levels”, she says.
Driven by soaring stock market prices, the very wealthy have become extremely rich over the past ten years: out of 100 dollars of wealth created, 54.4 dollars have gone into the pockets of the wealthiest 1%, while 70 pennies have benefited the least fortunate 50%, notes the NGO. In total, these “1%” captured seventy-four times more wealth than the “50%”.
More and more billionaires
Billionaires have doubled their fortunes, while being more and more numerous, says Oxfam, whose director general, Gabriela Bucher, is invited to Switzerland.
Gold, “extreme concentration of wealth undermines economic growth, corrupts politicians and the media, corrodes democracy and increases polarization”writes the NGO, adding that inequalities have become “an existential threat to our societies, crippling our ability to end poverty”and put “the future of the planet (…) in danger”.
According to the international organization, taxation has a role ” crucial “ to play in order to reduce the number of billionaires on the planet, and must affect the income and capital of the wealthiest.
Among the measures proposed in this report: an exceptional tax on wealth, a tax on dividends, and an increase in taxation on the income from work and capital of the richest 1%.
Taxing capital, a financial windfall to exploit
Capital, a financial windfall “much more important than wages” for large fortunes, must be taxed more on the gains made, in particular thanks to the sale of shares, but also by the simple possession, underlines the organization.
According to the NGO, A wealth tax of 2% on millionaires worldwide, 3% on those whose wealth exceeds $50 million and 5% on billionaires worldwide would raise $1.7 trillion annually”.
Such a sum would allow, according to Oxfam, to “lift 2 billion people out of poverty”of “Fill the funding gap for UN emergency humanitarian appeals and fund a global plan to eradicate hunger”to cover part of the consequences of climate change in poor countries and to“provide universal health care and social protection [à] 3.6 billion » of people.