Taxing super-wealth: Initiative by billionaires and millionaires calls for higher taxes worldwide

Taxing super-wealth: Initiative by billionaires and millionaires calls for higher taxes worldwide

According to a report by amp.dw.com,

The world's richest people, including 260 billionaires and millionaires, delivered an open letter at the World Economic Forum in Davos. They are calling for higher taxation of the super-rich worldwide as social inequality continues to increase. This demand has been supported by celebrities such as Valerie Rockefeller, Abigail Disney and Marlene Engelhorn, who inherited most of their wealth and find this inappropriate.

The gap between rich and poor is widening worldwide, with a third of all private wealth going to the richest one percent of humanity, while the poorest four billion people receive only two percent of the additional wealth. Nevertheless, the political implementation of higher taxation of the super-rich is difficult because large companies and business associations offer strong political resistance. The relocation of residence to tax-favorable foreign countries and the international influence of large corporations mean that national initiatives to tax extremely high wealth have no chance.

The impact of higher taxation on the super-rich could have a positive impact on reducing social inequality by generating additional money for government coffers. However, this would best be coordinated internationally. A first positive example of this is the agreed minimum tax rate of 15 percent for companies in 130 countries in order to prevent tax evasion by large corporations.

Overall, it shows that the political implementation of higher taxation of the super-rich is associated with various challenges that include both national and international aspects. Nevertheless, international initiatives such as the agreed minimum tax rate are a first step towards a more equitable distribution of wealth.