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Emissions of Richest 1% Will Cause 1.3 Million Heat Deaths: Oxfam

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Original article by JAKE JOHNSON republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Climate activists of Extinction Rebellion hold a protest action against private jets at the ExecuJet Aviation Group in Zaventem, near Brussels Airport, on February 13, 2023.  (Photo: Nicolas Maeterlinck/Belga Mag/AFP via Getty Images)

“The super-rich are plundering and polluting the planet to the point of destruction and it is those who can least afford it who are paying the highest price.”

The richest 1% of the global population produced 16% of the world’s carbon dioxide in 2019, generating as much planet-warming pollution as the poorest two-thirds of humanity, according to a report released Monday by Oxfam International.

Climate Equality: A Planet for the 99% describes the fossil fuel-driven climate emergency and runaway inequality as “twin crises” that are leaving those least responsible for planetary breakdown to bear the worst consequences, from catastrophic extreme weather to food and water shortages.

“If no action is taken, the richest will continue to burn through the carbon we have left to use while keeping the global temperature below the safe limit of 1.5°C, destroying any chance of ending poverty and ensuring equality,” the report warns. “The world needs an equal transformation. Only a radical reduction in inequality, transformative climate action and fundamentally shifting our economic goals as a society can save our planet while ensuring wellbeing for all.”

Using the latest available emissions data from the Stockholm Environment Institute, Oxfam calculated that it would take roughly 1,500 years for a person in the bottom 99% to produce as much CO2 pollution as the world’s top billionaires create in a year. The annual emissions of the global super-rich cancel out the emissions-reduction impact of nearly a million onshore wind turbines, according to the report.

The report also estimates that the emissions of the top 1% in 2019 will cause 1.3 million heat-related excess deaths in the coming decades, with most of the deaths occurring in the current decade.

Oxfam noted that transportation is far and away the largest source of pollution from the ultra-rich, whose private jets, yachts, and fleets of gas-guzzling cars are highly carbon-intensive. Experts at Indiana University estimated in 2021 that a “superyacht” emits more than 7,000 tons of CO2 per year.

Climate activists have also increasingly targeted private jet travel as a key source of luxury emissions. Oxfam observed in its new report that “a short trip on a private jet will produce more carbon than the average person emits all year.”

The report comes in the wake of news from the World Meteorological Organization that global greenhouse gas concentrations reached an all-time high once again last year, underscoring the need for dramatic action to curb fossil fuel use and transition to renewable energy.

Chiara Liguori, Oxfam’s senior climate justice policy adviser, said in a statement that “the super-rich are plundering and polluting the planet to the point of destruction and it is those who can least afford it who are paying the highest price.”

“The huge scale of climate inequality revealed in the report highlights how the two crises are inextricably linked—fueling one another—and the urgent need to ensure the rising costs of climate change fall on those most responsible and able to pay,” said Liguori.

“Governments globally, including the U.K., need to tackle the twin crises of inequality and climate change by targeting the excessive emissions of the super-rich by taxing them more,” Liguori added. “This would raise much-needed revenue that could be directed to a range of vital social spending needs, including a fair switch to clean, renewable energy as well as fulfilling our international commitments to support communities who are already bearing the brunt of the climate crisis.”

Oxfam’s report calls on governments to pursue a “radical increase in equality” by imposing wealth taxes on the richest 1% as well as steep inheritance, land, and property taxes. The report also recommends taxing or banning private jet travel, space tourism, and other polluting luxury activities and imposing “permanent, automatic” windfall profit levies on major corporations that often take advantage of crises such as wars and pandemics.

Additionally, Oxfam urged governments to invest heavily in establishing universal programs—from healthcare to education to childcare—and transitioning away from fossil fuels. The group said that rich countries must honor their commitments to provide climate financing to poor nations facing the brunt of the climate crisis and support debt cancellation and other relief measures.

“Unless we rapidly reduce carbon emissions,” the report states, “we will exhaust the amount of carbon we can emit without triggering climate breakdown within just five years.”

Original article by JAKE JOHNSON republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

dizzy: We’ve had a 5 years warning before and not from David Bowie.

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A Ferrari driven into a wall.
Continue ReadingEmissions of Richest 1% Will Cause 1.3 Million Heat Deaths: Oxfam

‘Time to Ground These Fat Cats’: Markey Proposes Tax Hike on Private Jet Travel

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Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Tesla CEO Elon Musk boards his private jet before departing from Beijing Capital International Airport on May 31, 2023.
Tesla CEO Elon Musk boards his private jet before departing from Beijing Capital International Airport on May 31, 2023.

“Billionaires and the ultra-wealthy are getting a bargain, paying less in taxes each year to fly private and contribute more pollution than millions of drivers combined on the roads below.”

U.S. Sen. Ed Markey announced legislation on Wednesday that would hike fuel taxes for private jet travel and transfer the revenue to a new federal fund aimed at bolstering clean public transportation and other climate initiatives.

The bill, titled the Fueling Alternative Transportation With a Carbon Aviation Tax (FATCAT) Act, would add a $1.73-per-gallon surcharge to the current fuel tax for private jet travel, which is around $0.22 per gallon. Markey’s new surcharge would amount to the equivalent of roughly $200 per metric ton of a private jet’s carbon emissions, according to the senator’s office.

Private jet flights—a significantly more polluting form of travel than commercial flights or trains—surged during the coronavirus pandemic. One recent study by the Institute for Policy Studies (IPS) and the Patriotic Millionaires estimated that private jets’ planet-warming emissions jumped by more than 23% during the Covid-19 crisis.

Elon Musk, Tesla’s billionaire CEO, is the most frequent private jet flyer in the U.S., helping produce more than 2,100 tons of carbon emissions last year while paying minimal taxes, according to IPS and the Patriotic Millionaires. The groups pointed to research showing that just 1% of the world’s population is responsible for half of all aviation emissions.

“The 1 percent can’t free ride on our environment and our infrastructure at a discount,” Markey (D-Mass.) said in a statement. “Billionaires and the ultra-wealthy are getting a bargain, paying less in taxes each year to fly private and contribute more pollution than millions of drivers combined on the roads below. It’s time to ground these fat cats and make them pay their fair share so that we can invest in building public transportation that communities across the country and our economy desperately need.”

Rep. Nydia Velázquez (D-N.Y.) introduced companion legislation in the House.

“Working families shouldn’t subsidize the ultra-wealthy to fly private and destroy our environment,” said Velázquez. “If billionaires want to travel on private jets, they should pay similar taxes to those flying commercial. It’s time for the rich to pay for their pollution so we can fund environmental justice initiatives and affordable public transportation across the country.”

Climate campaigners have been targeting private jets with growing frequency in recent years as research has more closely examined their impacts on the planet. The European group Transport & Environment found that private jets are five to 14 times more polluting than commercial planes and 50 times more polluting than trains.

In May, dozens of climate activists and scientists disrupted Europe’s largest private jet sales fair to demand a total ban on the planes. IPS and the Patriotic Millionaires estimated that the median net worth of a full private jet owner is $190 million.

“Sales of private jets are skyrocketing, and with them the one percent’s hugely unfair contribution to the climate crisis—while the most vulnerable people deal with the damage,” Klara Maria Schenk of Greenpeace’s Mobility for All campaign said during the May protest. “It is high time for politicians to put a stop to this unjust and excessive pollution and ban private jets.”

This story has been updated with additional details about the bill.

Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Continue Reading‘Time to Ground These Fat Cats’: Markey Proposes Tax Hike on Private Jet Travel

Here’s How the ‘Jet-Owning Oligarchy’ Harms Both Planet and Workers

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Original article by KENNY STANCIL republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

A new analysis catalogs alarming facts about the destructive private jet industry, which is emblematic of runaway economic and carbon inequality.

Research published Monday details how the working class is paying the price, in more ways than one, for the “jet-owning oligarchy” to hop around the globe in their personal luxury planes.

It’s well-established that private jet travel by the super-rich is worsening the fossil fuel-driven climate crisis. Adding insult to injury, this conspicuously carbon-intensive consumption is being subsidized by ordinary taxpayers, as the Institute for Policy Studies (IPS) and Patriotic Millionaires make clear in their new analysis.

Entitled High Flyers 2023: How Ultra-Rich Private Jet Travel Costs the Rest of Us and Burns Up Our Planet, the report catalogs alarming facts about the private jet industry and makes recommendations about how to rein in this potent symbol and manifestation of escalating inequality.

To begin with, “private jets emit at least 10 times more pollutants than commercial planes per passenger,” the report notes. “Unsurprisingly, approximately 1% of people are believed to be responsible for about half of all aviation carbon emissions.”

Amid a surge in wealth inequality since the start of the Covid-19 pandemic, “private jet use has increased by about a fifth, and private jet emissions have increased more than 23%,” the report points out. “The private jet sector set industry records with regards to transaction and dollar volume in 2021 and 2022.”

While a coronavirus-era boom is evident, the industry has been growing steadily alongside wealth inequality since the turn of the century. As the report states: “The size of the global fleet has increased 133% in the last two decades from 9,895 in 2000 to 23,133 in mid-2022. This bonanza was accompanied by an unprecedented number of business jet operations, 5.3 million in 2022.”

“If we can’t ban private jets, we should at least tax them and require them to pay to offset their environmental damage and subsidies.”

According to the report, “The median net worth of a full and fractional private jet owner is $190 million and $140 million respectively.” A minuscule 0.0008% of the global population belongs to the jet-owning class, which consists mostly of financial and real estate tycoons.

Last year, billionaire Elon Musk, “the most active high flyer in the United States,” bought a new jet and took 171 private flights, or about one every other day, the report notes.

In so doing, he single-handedly “contributed to the consumption of 837,934 liters of jet fuel,” states the report, and he “was responsible for 2,112 tons of carbon emissions”—132 times more than the entire carbon footprint of an average person in the United States.

In a statement, report co-author Kalena Thomhave, a researcher with the Program on Inequality and the Common Good at IPS, called private jets “a microcosm of our system of wealth inequality even beyond their image of extravagance.”

“Private flyers pay just 2% of the taxes that primarily fund the Federal Aviation Administration, yet nearly 17% of flights handled by the FAA are private,” said Thomhave. “Meanwhile, private jets contribute disproportionately to carbon emissions while often representing significant tax savings for their wealthy owners.”

As the report observes: “Thousands of municipal airports in the U.S. are funded by the public, but many primarily serve private and corporate jets. These airports may not offer scheduled passenger service, but they still offer airport runways subsidized by taxes.”

Such regressive taxation is the product of industry lobbying, the report explains:

The largest player in the private jet lobby, the National Business Aviation Association, has spent an average $2.4 million each year since 2008 lobbying the federal government, primarily for tax giveaways. During the Covid-19 pandemic, the industry specifically lobbied for Covid relief, particularly “medium to long-term liquidity assistance and relief from air transportation excise taxes,” even though industry demand was quickly climbing.

As wealth inequality soars, so too does the value of the private jet market, which grew from $32.3 billion in 2021 to $34.1 billion in 2022, the report notes. With wealth being concentrated in fewer and fewer hands and little to no downward redistribution on the horizon, the private jet industry is projected to expand further in the coming years.

Report co-author Omar Ocampo, a researcher with the Program on Inequality and the Common Good at IPS, said that the private jet industry’s expected growth this decade “provides us with a great opportunity to levy a luxury transfer tax on private jet sales.” He added that “the revenue raised from this tax can be invested towards developing a green transportation system.”

According to the report, “A 10% and 5% transfer fee on pre-owned and new private aircraft would have raised $2.4 billion in 2021 and $2.6 billion in 2022.”

In addition to imposing a transfer tax on all private jet sales, IPS and Patriotic Millionaires recommend the following steps be taken:

  • Levy a private jet fuel tax;
  • Institute a “short hop” surcharge;
  • Resist efforts to increase passenger facility charges until private jet owners pay their fair share;
  • Create a sustainable transportation equity trust fund;
  • Increase TSA security oversight of private jets; and
  • Pass the Aircraft Ownership Transparency Act.

According to the report, Musk would have paid nearly $4 million in additional taxes last year if a transfer fee and jet fuel tax had been in place.

“Private jet travel by billionaires and the ultra-wealthy imposes a tremendous cost on the rest of us,” said Chuck Collins, another co-author of the report.

“Not only do ordinary travelers and taxpayers subsidize the air space for private jets, but the high flyers also contribute considerably more pollution than other passengers,” said Collins. “If we can’t ban private jets, we should at least tax them and require them to pay to offset their environmental damage and subsidies.”

Original article by KENNY STANCIL republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Continue ReadingHere’s How the ‘Jet-Owning Oligarchy’ Harms Both Planet and Workers

‘We Are Not Taxing the Very Wealthy Enough’: Runaway Inequality About to Get Worse

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Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

People participate in a “march on billionaires” event on July 17, 2020 in New York City.
(Photo: Spencer Platt/Getty Images)

“Americans overwhelmingly prefer raising taxes on the ultra-wealthy and huge corporations to making cuts to critical programs like healthcare, medical research, and infrastructure,” said Sen. Elizabeth Warren.

The United States’ astronomical levels of economic inequality are poised to become further entrenched in the coming years as what The New York Timesdescribed Sunday as “the greatest wealth transfer in history” gets underway, with the richest members of the Baby Boomer generation set to pass trillions of dollars in assets on to their descendants—often paying little or nothing in taxes.

“Most will leave behind thousands of dollars, a home, or not much at all. Others are leaving their heirs hundreds of thousands, or millions, or billions of dollars in various assets,” the Times reported. “Of the $84 trillion projected to be passed down from older Americans to millennial and Gen X heirs through 2045, $16 trillion will be transferred within the next decade.”

The newspaper added that thanks to the loophole-ridden U.S. tax system, “heirs increasingly don’t need to wait for the passing of elders to directly benefit from family money, a result of the bursting popularity of ‘giving while living‘—including property purchases, repeated tax-free cash transfers of estate money, and more—providing millions a head start.”

“The trillions of dollars going to heirs will largely reinforce inequality,” the Times observed. “The wealthiest 10% of households will be giving and receiving a majority of the riches. Within that range, the top 1%—which holds about as much wealth as the bottom 90%, and is predominantly white—will dictate the broadest share of the money flow. The more diverse bottom 50% of households will account for only 8% of the transfers.”

Don Moynihan, a professor at Georgetown University’s McCourt School of Public Policy, argued that the Times analysis further demonstrates that “we are not taxing the very wealthy enough.”

The Times noted that individuals in the U.S. can pass nearly $13 million in assets to heirs without paying the federal estate tax, which only applies to around two of every 1,000 American estates.

“As a result, although high-net-worth and ultrahigh-net-worth individuals could inherit more than $30 trillion by 2045, their prospective taxes on estates and transfers is $4.2 trillion,” the Times observed.

The explosion of wealth inequality in the U.S. over the past several decades has prompted growing calls for systemic reform but little substantive action from lawmakers. In 2017, congressional Republicans and then-President Donald Trump contributed to the inequality boom by ramming through tax legislation that disproportionately benefited the wealthiest Americans.

Now in control of the U.S. House, Republicans are trying to make the Trump tax cuts for individuals permanent and eliminate the estate tax altogether—a move that would give the nation’s wealthiest households another $2 trillion in tax breaks.

In April, Sen. Bernie Sanders (I-Vt.) led several of his colleagues in offering an alternative proposal: Legislation that would impose progressively higher taxes on estates worth between $3.5 million and $1 billion, as well as a 65% levy on estates worth more than $1 billion.

“At a time of massive wealth and income inequality, we need to make sure that people who inherit over $3.5 million pay their fair share of taxes,” Sanders said last month. “We do not need to provide a huge handout to multi-millionaires and billionaires. It is unacceptable that working families across the country today are struggling to file their taxes on time and put food on the table, while the wealthiest among us profit off of enormous tax loopholes and giant tax breaks.”

Sen. Elizabeth Warren (D-Mass.), a co-sponsor of Sanders’ legislation, tweeted Monday that “Americans overwhelmingly prefer raising taxes on the ultra-wealthy and huge corporations to making cuts to critical programs like healthcare, medical research, and infrastructure.”

“Congressional Republicans need to get on board,” the senator added.

Morris Pearl, a former managing director at the asset management behemoth BlackRock and the chair of the Patriotic Millionaires, stressed in an interview with the Times that structural changes to the U.S. tax code—not just a crackdown on wealthy tax cheats—are necessary to slow the rise of inequality.

“People are following the law just fine. I generally don’t pay much taxes,” said Pearl, whose group has warned that democracy “will not survive” unless the rich are taxed much more aggressively.

Stressing the ease with which rich families in U.S. are able to pass assets on to their heirs tax-free, Pearl told the Times that he currently holds stock that his wife’s father, “who died a long time ago, bought in the 1970s,” an investment that “has gone from a few thousand dollars to many hundreds of thousands of dollars”—unrealized capital gains that are not subject to taxation.

University of California, Berkeley economists Emmanuel Saez and Gabriel Zucman have estimated that $2.7 trillion of the $4.25 trillion in wealth held by U.S. billionaires is unrealized.

“I’ve never paid a penny of taxes on all that,” Pearl said of his inherited equities, “and I may not ever, because I might not sell and then my kids are going to have millions of dollars in income that’s never taxed in any way, shape, or form.”

Original article by Jake Johnson republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0).

Continue Reading‘We Are Not Taxing the Very Wealthy Enough’: Runaway Inequality About to Get Worse

Richest 1% of people in UK now wealthier than 70% of population combined

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https://www.thelondoneconomic.com/news/richest-1-of-people-in-uk-now-wealthier-than-70-of-population-combined-341998/

The richest 1 per cent of people in the UK are now wealthier than 70 per cent of the population combined, according to analysis by Oxfam.

A report by the charity highlights how the 685,500 richest people in Britain are worth a total of £2.8 trillion, compared with 48 million people in the UK whose combined wealth totals £2.4 trillion.

Oxfam’s report, called Survival of the Richest, builds a picture of widening worldwide inequality, after extreme poverty and extreme wealth increased simultaneously over the past two years for the first time in quarter of a century.

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https://www.thelondoneconomic.com/news/richest-1-of-people-in-uk-now-wealthier-than-70-of-population-combined-341998/

Continue ReadingRichest 1% of people in UK now wealthier than 70% of population combined