The world’s richest 1% have increased their wealth by a total of $42 trillion over the past decade, Oxfam said today ahead of the G20 summit in Brazil, where taxing billionaires is high on the agenda.
As the non-governmental organization adds, taxation of the rich has dropped sharply to a “historically low” level. The organization warns of “unacceptable levels” of inequality with the rest of the world “trying to live on scraps”.
Brazil has made international cooperation on taxing the super-rich a priority of its presidency of the G20, the group of countries that account for 80 percent of global GDP.
At a summit in Rio de Janeiro this week, G20 finance ministers are expected to make progress on ways to raise taxes on the ultra-rich. They will also discuss how billionaires will no longer be able to avoid taxes.
In this context, the methodology of taxation of billionaires and high income earners should be defined.
The proposal is expected to spark a backlash today and tomorrow at a summit with France, Spain, South Africa, Colombia and the African Union in favor of the initiative, while the US has strongly opposed it.
Oxfam called it a “litmus test for G20 governments” and called on them to impose at least an 8% annual tax on the “extreme wealth” of billionaires.
According to Oxfam, the figure of $42 trillion is almost 36 times the accumulated wealth of the poorest 50% of the world’s population.
However, billionaires worldwide “pay less than 0.5% of their wealth in taxes,” the report concludes, adding that nearly 4 in 5 billionaires come from G20 countries.