Do these billionaires see the writing on the wall?
So I caught a funny story the other day. There’s a bunch of billionaires who want to pay more tax.
I know. I thought it was a typo too. But apparently, it’s a thing.
At the World Economic Forum – which used to be held behind the fortified walls of Davos and is now safely locked away behind a digital pay-wall – a group calling themselves the Patriotic Millionaires’ Group issued a demand to world leaders.
Tax us more!
And they weren’t just trolling diplomats. Seems like it’s the real deal.
They note that most billionaires have had a very good crisis – the wealth of world’s 10 richest individuals increased by $1.5 trillion – or $15,000 a second!
Nuts.
And so this group – which includes 100 millionaires and billionaires – reckon the ultra-rich should chip in more to help the world recover from Covid.
What a radical idea.
And they weren’t just trolling diplomats. Seems like it’s the real deal.
ZURICH, Jan 19 (Reuters) – A group of more than 100 billionaires and millionaires has issued a plea to political and business leaders convening virtually for the World Economic Forum: make us pay more tax.
The group calling itself the “Patriotic Millionaires” said that the ultra-wealthy were not currently being forced to pay their share of the global economic recovery from the pandemic.
“As millionaires, we know that the current tax system is not fair. Most of us can say that, while the world has gone through an immense amount of suffering in the last two years, we have actually seen our wealth rise during the pandemic – yet few if any of us can honestly say that we pay our fair share in taxes,” the signatories said in an open letter
… The signatories including Disney heiress Abigail Disney and venture capitalist Nick Hanauer told Davos participants: “You're not going to find the answer in a private forum… you're part of the problem.”
According to a study conducted by the Patriotic Millionaires together with Oxfam and other non-profits, a progressive wealth tax starting at 2% for those with more than $5 million and rising to 5% for billionaires could raise $2.52 trillion, enough globally to lift 2.3 billion people out of poverty and guarantee healthcare and social protection for individuals living in lower income countries.
The World Bank in 2021 published an article urging countries to consider a wealth tax to help reduce inequality, replenish state coffers depleted by COVID-19 relief schemes and regain social trust.
However, outside Argentina and Colombia, no new wealth tax schemes have been initiated since the start of the pandemic.
Those crazy kids. So idealistic.
(It’s not going to happen.)
But I think this is a sleeper-issue. As Hedge Fund guru Ray Dalio has pointed out a number of times, rising inequality always precedes social unrest.
And as the world finds it feet after we finally get on top of Covid, I think most people are going to realise that the ultra-rich have made off like bandits, while ordinary folk are left holding the bag.
People might get angry.
I think the Patriotic Millionaires are trying to get ahead of the curve on this one. They know anger is rising (and perhaps the best way to protect their wealth in the long run is to make sure the fabric of society doesn’t dissolve beneath them).
So keep an eye on this one. This could be an issue that defines the second half of the year.
JG.
Ruth says
Garbage. I worked for the ATO, in the days when you could visit there. Sometimes large envelopes stuffed with cash would be in the letterbox. We called these ‘conscience payments’ and put them in as consolidated revenue. No, no cream was taken off the top.
The people you are describing could easily make such a donation but choose not to.
Au contraire. They perceive the changing wind, none of them has a cent to their name, you know that Jon. It’s all controlled by trusts.
Trusts were established originally for those who couldn’t manage their own affairs: infants, wives (because women weren’t allowed to own property), prisoners, mentally retarded people.
I’m not deceived by this for one minute.