Brenna Hughes Neghaiwi, Simon Jessop

ZURICH, (Reuters) – A group of over 100 billionaires and multimillionaires is pleading with political and business leaders to pay more taxes.

A group known as the “Patriotic Millionaires,” stated that ultra-wealthy aren’t being asked to help pay for the recovery of global economic growth from the pandemic.

    “As millionaires, we know that the current tax system is not fair. Many of us know that while the world’s suffering has been immense over the last 2 years, many of us have seen our wealth increase during the pandemic. But, few, if anyone, can claim that they pay their fair share in taxes.” The signatories wrote in an open letter published to mark the World Economic Forum’s “virtual Davos” which began Jan. 17.

Reuters published last year a shocking report on billionaires’ wealth growth in 2020. The world was in lockdown, and the global economic crisis was threatening to worsen. Millionaires called for increased taxes.

Although that agreement was reached by more than 130 countries, it made it easier for big corporations to pay 15% global minimum taxes. However, millionaires felt the rich still had to make more.

The fortunes of the 10 wealthiest people in the world have increased to $1.5 trillion over the period of the pandemic. This is $15,000 per second according to an Oxfam study.

PART OF THE PROBLEM’

According to the letter signed by Abigail Disney (Disney heiress) and Nick Hanauer (Venture Capitalist), they told Davos attendees convening for a week-long online power-brokering and talks that there was no way to get the answers in a private forum.

The spokesperson of the World Economic Forum stated that paying fair taxes was one the forum’s principles and that a wealth tax such as what exists in Switzerland (where the Forum is based) could prove to be useful elsewhere.

The rich, except for a few in Europe, are exempt from paying annual taxes on their assets, such as stocks, artwork or real estate. They only pay tax when they sell the asset.

The Patriotic Millionaires and Oxfam conducted a joint study and found that progressive wealth taxes starting at 2% for people with over $5 million rising to 5% to billionaires could generate $2.52 trillion. That’s enough money to raise $2.52 trillion globally and lift 2.3bn out of poverty. It also guarantees healthcare coverage and protection to those living in countries with lower incomes.

A World Bank article published in 2021 urged countries to look into a wealth-tax to lower inequality, restore state coffers and rebuild social trust.

However, new wealth tax schemes are not being implemented outside Argentina and Colombia.