A group of multi-millionaires has come together to call on international governments to impose higher taxes on them and other millionaires with the aim of reducing the growing wealth gap. A letter signed by 102 millionaires was published online on Wednesday, which called on a complete overhaul of the international tax system.
The millionaires said the dysfunctional and "unfair" tax system has resulted in a "colossal lack of trust" between the rich elites and the rest of the world. The group acknowledged that the current system has made them wealthier over the past years, while the rest of the world suffers amid the COVID-19 pandemic and economic crisis. The group said that only a few of those who had accumulated their wealth over the past years could honestly say that they had paid their fair share in taxes.
The so-called "Patriotic Millionaires" include big-name multi-millionaires such as Disney heiress Abigail Disney, her brother Tim Disney, and Amazon investor Nick Hanauer. Apart from millionaires from the U.S., the letter was also signed by well-known millionaires from eight different countries, including those in the UK, Germany, and Canada.
In the letter, the group argued that it was important for democracies to have a fair tax system that can help bridge the gap between the wealthy and those in the working class. The group said governments should work to impose better tax laws that ensure that the wealthy pay their fair share.
The group said that instead of multi-billion dollar vanity projects or one-time philanthropic gestures, the rich should work to contribute more to society by paying more taxes. The group argued that the current system has been deliberately designed to make the rich even richer and for the poor to remain poor.
According to a study conducted by the Patriotic Millionaires, Oxfam, and other non-profits, a wealth tax of 2% on people worth more than $5 million and 5% on those worth more than $1 billion could generate $2.52 trillion in revenue, enough to lift 2.3 billion people out of poverty and provide health care and social protection to those in lower-income countries.
According to a separate Oxfam report, the wealth of the world's ten richest people had increased to $1.5 trillion since March 2020, when the global economy began to slow, and the stock market plummeted.
This week's virtual World Economic Forum, a gathering of world leaders, corporate executives, and other elites, is taking place at the same time as the publication of the letter. Normally held in Davos, Switzerland, the economic summit was moved online this year because of the uncertainties surrounding the COVID-19 epidemic.
