Lhe richest 1% on the planet own nearly half of the world’s wealth, according to Oxfam figures, and they emit more CO₂ emissions than the poorest half of the planet, according to economist Lucas Chancel. However, they are far from being taxed according to their means to fight against climate change and its consequences.
In a country like France, the tax has even become decreasing for the richest households. While the French pay on average 50% of their income in compulsory deductions, the richest 0.0002% of French people, or around 370 households, benefit from an effective tax rate of around 26%. Worse, the effective income tax rate for these super-rich is only 2%, according to a note produced by the Public Policy Institute.
It is therefore not a question of an error or a hole in the tax racket, but of a tax system knowingly serving the richest among us. A situation of favoritism that has become the norm in our European democracies. In almost all European countries, taxation of the richest has gradually disappeared. In just thirty years, the wealth tax has been abolished in all EU countries except Spain. It is therefore time to reverse this trend, which is not only economically inefficient, but also unbearable from a democratic point of view.
This is why we are calling today for the creation of a European tax on large fortunes in order to fight climate change and growing inequalities. Two studies have shown that such a tax would bring in more than 200 billion euros per year. Sums which are therefore in no way anecdotal, even though the European Union (EU) must find sustainable means to finance its ecological and social transition policies.
National disparities
We therefore chose to deposit a European citizens’ initiative. This initiative, a sort of popular initiative referendum on a European scale, is a little-known procedure which allows, if successful, to ask the European Commission to formulate a concrete legislative proposal to respond to our request. In this case, a proposal for a European tax on large fortunes to finance the ecological and social transition.
The establishment of a European tax on large fortunes would require three legislative interventions. First of all, we invite the European Commission to present a proposal for a directive creating a European tax on large fortunes, on the basis of Article 115 of the Treaty on the Functioning of the EU. This article allows the Council, acting unanimously, to adopt directives to approximate national legislation, particularly in the field of direct taxation, since these have a direct impact on the establishment or operation of the indoor market. However, national disparities in the taxation of the ultra-rich are likely to fuel increased tax competition within the EU and create distortions within the internal market.
You have 46.64% of this article left to read. The rest is reserved for subscribers.