Billionaires became richer by $6.5 trillion: G20 countries call for taxation
26 June 07:51
The wealth of the world’s 3,000 richest people has increased by $6.5 trillion over the past 10 years, which is equal to 14.6% of global GDP, according to a new report by the international charity Oxfam. It is reported by "Komersant Ukrainian" with reference to the Guardian.
In total, 1% of the world’s population received more than $33.9 trillion in profits, which, according to Oxfam, is enough to fully cover the annual needs to overcome global poverty 22 times.
Rising inequality and calls for a wealth tax
The report comes amid growing pressure on governments to introduce a global tax on the super-rich. Activists, particularly in France, are calling for billionaires to be taxed to fund social services and fight climate change.
In the UK, the number of billionaires has grown from 15 in 1990 to 165 in 2024. According to the Equality Trust, the average amount of their wealth has increased by more than 1,000%, and the actual tax rate for billionaires is only 0.3%, which is significantly less than the average worker.
Call for an international fight against excessive inequality
Oxfam has called on the British government to work with other countries to combat “extreme inequality”. According to the report, from 1995 to 2023, private wealth grew eight times faster than public wealth.
“This government risks permanently losing its bearings in international development if it does not restore the proven methods of fighting poverty: investing in social services and fair taxation,” said Rachel Noble, senior adviser at Oxfam.
She called for taxing the “trillions of pounds” that are “mothballed” in the accounts of the super-rich and focusing on fighting inequality, gender oppression and the climate crisis.
Tax on billionaires: an initiative of Spain, Brazil, Germany and South Africa
In 2024, Spain, Brazil, Germany, and South Africa submitted a joint proposal at the G20 summit for a minimum 2% tax on the wealth of billionaires. According to French economist Gabriel Zuckman, this could bring in up to $250 billion in additional revenue.
Governments have called on other countries to support this initiative, noting that it would complement measures to tax the digital economy and the global minimum corporate tax of 15% for multinationals.
Fighting offshore and tax loopholes
Ministers of the four countries emphasized the need to combat tax evasion through offshore tax havens, such as Monaco or Jersey. It is proposed that the tax should take into account not only the place of residence, but also the place of profit.
During his visit to London, Spanish Economy Minister Carlos Cuerpo said that the richest countries should be bolder, as voters are increasingly demanding a redistribution of wealth.
An Oxfam poll showed that 86% of people support closing tax loopholes that allow wealthy individuals and corporations to avoid paying taxes.
