Davos: Millionaires group calls for Wealth Tax

A group of hundred billionaires have submitted a plea to the World Economic Forum. The title of the plea is “Make us Pay more tax”

What did the millionaires do?

A group of millionaires and billionaires have issued a plea. The group calls themselves as “Patriotic Millionaires”. They are of the view that the ultra wealthy are not contributing their share towards the global recovery from the pandemic. This is because of unfair tax system. According to them, they have witnessed wealth gain while the rest of the world suffered in different angles. And so they want to pay a fair share of their earnings to the global recovery.

What is the plea about?

The “Make us pay more tax” plea suggests to make a deal with the big companies. These companies will have to pay a minimum tax of 15% of their annual turnover. In most of the countries the rich need not pay annual taxes on assets such as stocks, artworks or real estates. This is because; these assets are taxed only when they are sold.

Why the plea?

The world went into one of its worst recession since World War II. And on the other hand, the millionaires became billionaires and the billionaires accumulated more and more wealth.  The fortune of the top ten billionaires increased at the rate of 15,000 USD per second! Also, their wealth increased to 1.5 trillion USD.

What is the plan?

Taxing the millionaires earning 5 million USD per year at 2% and taxing billionaires at 5% will bring in 2.52 trillion USD. This is enough to lift 2.3 billion people out of poverty. Also, this amount is sufficient to guarantee social protection and health care.

Current Scenario

No wealth tax is collected in most of South American countries except Columbia and Argentina. In 2021, the World Bank urged the countries to consider wealth tax.

Significance

The billionaires are pushing for wealth tax because it helps to replenish the state through COVID-19 relief schemes, reduce inequality and also regain social trust.

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