London Daily

Focus on the big picture.
Wednesday, Aug 12, 2026

A global tax on millionaires would benefit the wealthy as well as the poor

A global tax on millionaires would benefit the wealthy as well as the poor

An open letter was recently published that was signed by more than 100 millionaires and billionaires, pleading to their class brethren – particularly those participating in the World Economic Forum’s recent online Davos summit – to adopt a fairer international tax system.
“To put it simply, restoring trust requires taxing the rich. The world – every country in it – must demand the rich pay their fair share,” the letter states. “Tax us, the rich, and tax us now.” In its conclusion, the letter adds a pretty astute assessment of the situation we face around the world. This is not a group of self-hating rich folk but rational-minded people looking to protect their own self-interest, as convoluted as that might sound.

“History paints a pretty bleak picture of what the endgame of extremely unequal societies looks like. For all our well-being – rich and poor alike – it’s time to confront inequality and choose to tax the rich. Show the people of the world that you deserve their trust,” the letter continues. “If you don’t, then all the private talks won’t change what’s coming – it’s taxes or pitchforks. Let’s listen to history and choose wisely.”

What the signatories are talking about is the fact that global capitalism has ratcheted up inequality, its primary contradiction, to a point that it is unlikely to be able to sustain itself much longer. This was already a huge problem prior to 1Covid1-19, but it has only got worse.

As Oxfam found in a report published earlier this month, the 10 richest men in the world have doubled their cumulative fortune from $700 billion to $1.5 trillion since the start of the pandemic. A new billionaire was created once every 26 hours from March 2020 to November 2021, it found.

But, on the flip side, according to Oxfam, more than 160 million people are so far estimated to have slipped beneath the poverty line. This egregious inequality, the report says, is responsible for more than 21,000 deaths per day.

Separately, the World Bank said in a report in September last year that the incomes of the bottom 40% globally fell by 6.7% compared to pre-pandemic projections. Inflation is surely eating away at wages even more at this point.

A major driver of this inequality has been the tax system. For example, in the United States, former President Donald Trump’s signature tax cuts to the wealthy and corporations created fertile ground for the pandemic hand-up. The Trump tax cuts lowered the corporate tax rate by 40% and, in its first year, doubled the number of companies paying zero taxes from 30 to 60. This included major firms such as Amazon.com Inc., Netflix Inc., Chevron Corp., Eli Lilly and Co., and Deere & Co., some of which have faced heavy criticism over working conditions.

The Trump estate tax cut – essentially a giveaway to the ultra-rich – triggered a 50% nosedive in IRS revenue from wealthy individuals, according to a Bloomberg report. This figure went from around $20 billion to just over $9 billion in 2020.

So, what can be done? Well, there’s already been talk about a global minimum tax. Late last year, the Organisation for Economic Co-operation and Development put forward a “two-pillar” solution, following an agreement by G20 countries in October 2021. This will establish a 15% minimum global tax by 2023 – however, analysis from Reuters found that there are glaring, billion-dollar loopholes such as “profit shifting” across countries – a strategy now widely used by major tech companies.

Fortunately, a detailed report by Oxfam, the Fighting Inequality Alliance, the Institute for Policy Studies, and the Patriotic Millionaires has found that a simple wealth tax on the global ultra-rich could raise over $2.5 trillion each year. This would have a graduated rate structure, with a 2% tax on wealth over $5 million, 3% on wealth over $50 million, and 5% on wealth over $1 billion.

The bottom line? This would be enough money to lift 2.3 billion people out of poverty, vaccinate everyone in the world, and ensure the likes of universal healthcare and a social safety net for everyone in low- and lower-middle-income countries, which covers about 3.6 billion people.

This seems a pretty easy fix to save capitalism from itself.

However, the discussion deserves further reflection, given that it wouldn’t be just poorer people who would benefit, but everyone – including the ultra-wealthy. First of all, it’s important to realize that ultra-wealth is not actually cash in hand, in many cases. The world’s richest man, Elon Musk, derives his fortune from stock holdings, namely Tesla, the company he acts as CEO for, and has admitted in court filings that he has debt against this stock.

In his own words, people like him are just in charge of huge “capital allocation” – and that is a responsibility, which no doubt induces massive stress, that no one person should have.

Second of all, there’s a reason why most billionaires live much of their lives in secrecy. They’re not the most popular individuals – and rightfully so, since their wealth often comes from exploitation. Maybe this is why people such as Musk and Jeff Bezos want to escape to another planet, Mark Zuckerberg is trying to create an alternative reality, Bill Gates spends a fortune in the media to make people like him, and Jack Dorsey is delving into ancient meditation practices.

Even your average, everyday millionaires – which actually works out to be quite a lot of older folks, at least in the US – have persistent stress and anxiety. The tension in society is omnipresent.

But, finally, the thing is that even if these guys weren’t in these roles, someone else would be. You can take that to the bank, since their stock-dependent wealth means they are bound by shareholders to juice profits by any means.

In the end, we are not talking about a moral failing of individuals, but a systemic issue that requires a systemic response, namely redistributive policies – otherwise, bring on those pitchforks.

Hats off to the signatories of that open letter who have the wherewithal to see the proverbial writing on the wall.
Newsletter

Related Articles

0:00
0:00
Close
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
UK Expands Global Talent Visa Scheme to Support Research-Intensive Companies
UK Equity Funds Suffer Record One Point Six Billion Pound Outflow Amid Capital Gains Tax Fears
Three-Quarters of England Enters Drought as Fifth Summer Heatwave Raises Economic Risks
UK Hiring Stabilizes for First Time Since 2022 as Employers Adjust to Higher Payroll Costs
UK Chancellor Orders Whitehall Spending Cuts as Public Debt Exceeds Three Trillion Pounds
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
×