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There are 16 people in the world who—if 99% of their wealth vanished overnight—would still be billionaires," said one campaigner. "We must tax the rich.

14 November 2024

Ahead of the G20 Leader's Summit, scheduled to take place over two days next week in Rio de Janeiro, international economists on Tuesday were calling on economic ministers to take an historic step toward reducing global inequality by approving a tax on extreme wealth.

"Tax the rich" has been a rallying cry among economic justice advocates for years, but with the richest 1% of people now owning more wealth than the bottom 95%, some of the world's top economists and finance ministers in recent months have joined the call for a fair taxation system that demands the wealthiest households pay their fair share.

Jenny Ricks, general secretary of the Fight Equality Alliance (FIA), pointed out that taxing the richest people in the world would barely dent their fortunes—but for millions of people across the Global South, it could mean the difference between whether healthcare and public services are provided to them or not.

"There are 16 people in the world who—if 99% of their wealth vanished overnight—would still be billionaires," said Ricks. "We must tax the rich, end austerity, and cancel debt to ensure healthcare, education, and other essential public services for billions in the Global South. A growing movement of millions across the world is tired of the G20 upholding a broken system. A first step forward would be supporting an ambitious global deal to tax the superrich."

The five richest men in the world have doubled their wealth since 2020, while 60% of people have become poorer. The richest 1.5% of people in the world now control nearly half the world's wealth.

FIA warned that with U.S. President-elect Donald Trump scheduled to take office in January, global finance ministers must take action to rein in the "era of the billionaire" before leaders like Trump lavish their billionaire donors with more tax breaks, decimating public services.

"Countries are on track to lose $4.8 trillion in tax to tax havens over the next 10 years," said Nathalie Beghin, co-director of the Instituto de Estudos Socioeconômicos in Brazil. "Such unchecked tax evasion perpetuates inequality and undermines the foundation of sustainable economic development. At this historic moment, G20 leaders must demand the changes needed to transform an outdated, unfair system that's no longer fit for purpose—if it ever was."

Beghin, an economist, called on G20 leaders to support the United Nations Framework Convention on International Tax Cooperation (UNFCITC), which would "tackle illicit financial flows, rediscuss inefficient tax expenditures, [and] tax transnationals and high net worth individuals."

"If Brazil could tax its superrich, as a consequence of a global commitment, the country could stop austerity measures and implement social, environmental and adaptation policies to fight hunger, poverty, and climate change," said Beghin. "Making big companies and very wealthy individuals pay their fair share is also fundamental to tackle inequality."

At a meeting in Rio de Janeiro in July, global finance ministers agreed on the need to develop a global tax system in which the richest people in the world pay a higher tax rate—despite the protests of the United States delegation.

Zinnia Quirós Chacón, a campaigner with Oxfam International, called the upcoming G20 meeting "a once-in-a-lifetime chance to make history."

"For the first time ever, world leaders are close to agreeing on a global plan to tax the superrich," she said.

Oxfam and other groups participating in the Say It With Me Now campaign—an initiative aimed at showing the widespread support for a global wealth tax—posted a video on social media showing supporters around the world asking the G20 ministers to take decisive action.

 

"Tax the superrich and make the world a better place for everyone," said the supporters in the video. "They won't even notice anyway."