A study from the World Bank showed that the pandemic had halted poverty reduction schemes. Photograph: Friedrich Stark/Alamy
The world’s 3,000 billionaires should pay a minimum 2% tax on their fast-growing wealth to raise £250bn a year for the global fight against poverty, inequality and global heating, ministers from four leading economies have suggested.
In a sign of growing international support for a levy on the super-rich, Brazil, Germany, South Africa and Spain say a 2% tax would reduce inequality and raise much-needed public funds after the economic shocks of the pandemic, the climate crisis and military conflicts in Europe and the Middle East.
They are calling for more countries to join their campaign, saying the annual sum raised would be enough to cover the estimated cost of damage caused by all of last year’s extreme weather events.
“It is time that the international community gets serious about tackling inequality and financing global public goods,” the ministers say in a Guardian comment piece.
“One of the key instruments that governments have for promoting more equality is tax policy. Not only does it have the potential to increase the fiscal space governments have to invest in social protection, education and climate protection. Designed in a progressive way, it also ensures that everyone in society contributes to the common good in line with their ability to pay. A fair share contribution enhances social welfare.”
Brazil chairs the G20 group of leading developed and developing countries and put a billionaire tax on the agenda at a meeting of finance ministers earlier this year.
The high levels of dissatisfaction with the NHS are a direct result of the Conservatives deliberately running down health services and using this as grounds for privatisation. I hear all the time from people struggling to get an appointment with their GP; unable to see an NHS dentist, while overstretched wards mean people are left in corridors and staff are overwhelmed.
“Yet it is very clear that people overwhelmingly want the NHS to remain free at the point of use and available to all. They don’t share the Conservative or Labour appetite for creeping privatisation.
“The public also unequivocally backs the NHS being funded by tax, with almost half believing taxes should rise so more can be spent on health services.
“The Green Party has never had any truck with the profit motive in health care and believes in a fully publicly funded NHS. We can find the billions the NHS desperately needs to improve its services and to pay health workers properly. A tax on the super-rich billionaires and multi-millionaires can provide the funds needed to fix the NHS and so rekindle our love affair with our most cherished public service.”
Labour is counting on the unpopularity of the Conservative Party to catapult it into power but in the absence of specific policies and failure to improve quality of life, electoral goodwill will quickly evaporate.
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Labour and Conservatives have become slaves to arbitrary fiscal rules even though they have failed to deliver almost every target relating to economic growth, inflation, public debt, investment and more. Labour emphasises that it wants to reduce the government debt to GDP ratio in five years’ time. However, no rationale is presented for such a straitjacket. No assessment is made of the consequences of removing billions of pounds from the economy. No rationale as to why low debt to GDP ratio is an indicator of the prosperity of a nation and why this should take priority over investment or redistribution. Analogies with household budgets or maxed out credit cards are misleading as governments, especially those with global currencies such as the Pound Sterling, can create money to achieve desired social objectives and levy selective taxation to eliminate inflationary effects. But Labour is no student of the modern monetary theory.
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Debt can be used to rebuild the economy even if Labour and Conservatives are hostile to it. The Post-Second World War boom was built upon direct public investment in new industries and social infrastructure. In 1946, public debt stood at over 270% of its GDP. This provided jobs and fuelled demand. It fuelled corporate investment as the state bought goods and services from the private sector. It laid foundations of emerging industries, such as biotechnology, information technology, aerospace and more specially as the private sector showed little appetite for long-term investment and risks. Within a generation, the public debt came down to 49% of GDP and I can’t recall our parents and grandparents fretting about the public debt.
Instead of a dynamic state, both Labour and Conservatives support further cuts in public spending even though that will reduce investment, slow economic growth, and inflict long-term damage. Too many public buildings and schools are crumbling away. The government response is that college spending per student aged 16–18 in 2024 will be 10% below 2010 levels, and about 23% below them for school sixth forms. Since 2010 local council funding has been cut by 23.3% in real terms, leading to degradation of public services and higher council tax on hard-pressed households. Hospitals in England have a waiting list of 7.6m appointments. None of this can be addressed by adherence to arbitrary fiscal rules.
There is a strong case for redistribution of income and wealth, but Hunt and Reeves ignore it even though higher disposable income for the less well-off has a greater multiplier effect. No amount of economic growth can be sustained unless people have good purchasing power to buy goods and services. Both parties reaffirm their faith in trickle-down economics which has seen wealth sucked upwards and prevent economic recovery. The UK has 171 billionaires with combined wealth of £684bn. The richest 1% of the population has more wealth than 70% of the population combined. The richest 10% of households hold 43% of all wealth, and the poorest 50% own just 9%.
This system is fucked, politics is failing us, we need a revolution or we really do face rule by ‘the mob’. As we pass through 1.5C of heating to 2C and then the predicted 3C in the lifetime of many alive today, we will lose all we cherish and value. Our treasured landscapes, the rule of law, education, healthcare, pensions – and yes the people we love. We will not be able to feed ourselves and those who rule us do not care. Look at Gaza, this is what they are prepared to let happen. Genocide is now acceptable.
In response, nonviolent civil resistance to a harmful state will continue, with coordinated, radical actions that reach out to new people and capture the attention of the world. Alongside this, a new political project will be set up. This will run local assemblies and will support and stand candidates to shape the electoral debate. A coordinating structure known as Umbrella, will support these projects and this will be the heart of our community of resistance.
Just Stop Oil will continue to be the major focus until we win, but we have a new three part demand: No New Oil, Revoke Tory Licences and Just Stop Oil by 2030. In addition to disrupting high-profile cultural events and continuing our Stop Tory Oil campaign, focussing on MP’s and those in power, this summer Just Stop Oil will commence a campaign of high-level actions at sites of key importance to the fossil fuel industry – airports.
In addition to Just Stop Oil, young people and students will be taking action in a new campaign that will demand an end to genocide – both in Palestine, and globally, from the continued drilling and burning of oil and gas.
Umbrella will launch Assemble, a democracy project that will mobilise hundreds of people by running local assemblies on issues of concern to communities across the country and giving them pathways to action. The goal is to create a “People’s House” to parallel the House of Commons as the first step towards having permanent legally binding citizens assemblies- a democratic revolution.
Umbrella will be the hub for fundraising, mobilisation and directing resources to a range of new campaigns and groups, including Robin Hood, a major new campaign based around a demand to properly fund our public services by taxing the richest in society.
Each of these campaigns will share the values of nonviolence and accountability.
The system is fucked. You know it, everyone knows it. Don’t just sit around and watch everything collapse. Build what comes next: a revolution in politics, economics – our entire way of life.
The Green Party is proposing to raise over £50bn annually by the end of the next parliament through taxing wealth fairly.
The proposal is part of the Green Party’s five-point plan to counter the cost-of-living crisis and deliver a fairer and more caring country in next week’s Budget.
Image of the Green Party’s Carla Denyer on BBC Question Time.
* Raise over £50 billion through taxing wealth fairly
* A large-scale green investment programme to transform our economy
* Billions more for health and social care;
* Funds for local authorities to invest in warm, affordable to heat homes
* VAT exemption for hospitality and cultural businesses
Green Party co-leader Carla Denyer said:
“There is wealth in the UK. It is distributed unfairly. Our economy is failing because our wealth, rather than circulating and benefiting everybody, is held in the stagnant assets of the super-rich.
“The Budget this year should focus on recirculating that wealth and making it work for everybody.
“Our wealth tax and wider tax proposals would also begin to tackle the desperate inequality that is a source of so many of our problems as a country.
“Taken together, we estimate that changes to Capital Gains Tax and National Insurance, alongside a new wealth tax, would raise over £50bn per year that would be available for the vital public investment our country is crying out for.
“We need to face up to the long-term threats to our economy, and the immediate costs which are currently being carried by those who can least bear them.
“We need a large-scale green investment programme to transform our economy from one reliant on cheap labour and fossil fuels to one that puts people and planet first.
“We need to deliver a housing programme that offers people warm, affordable- to-heat homes and helps councils cut people’s energy bills by upgrading home insulation.
“We need to invest in a health and social care system that guarantees dignity for all and to end the blight of long-term sickness. The rising cost of social care is hitting councils hard. Our reforms could help them too.
“We need to give a hand to hard-pressed small businesses in the hospitality sector which have been hit by Covid and the cost-of-living crisis. The temporary 5% VAT rate should continue and extend to all activities in the cultural and sports sectors, and leisure activities. Indeed, we would be more ambitious, zero-rating all these activities for the life of the next Parliament.
“The Conservatives have broken Britain and Labour seems to be shredding any policy that might fix it. Our five-point Green Budget alternative would create a fairer and more caring country.
“Of course, this ambitious programme of rebalancing our economy toward planet and people and away from profiteers and speculators must be paid for. That’s why we are proposing an immediate wealth tax and other tax reforms, while recognising that much of the investment would generate revenue in the medium- and long-term.
“Our wealth tax on the super-rich and wider tax reforms would be the fair way to fund the things we need to create a healthier society – high quality housing, social care and good jobs in a green economy.
“The Institute for Fiscal Studies (IFS) has warned the Chancellor: “the economic case for tax cuts before the next Spending Review is completed is weak” and reliant on severe cuts to local government, disability benefits and other key public services. The IFS is also correct to note that “the UK’s tax system is in dire need of reform.”
“Our approach offers a fairer, greener alternative – it doesn’t pay for election tax bribes by slashing spending on public services.
“Instead, it argues the case for real reforms and investment that put people and planet first.
“That is why we are proposing a wealth tax that will begin to shift the cost of dealing with the long-term crises we face away from those who can least afford to pay it to the super-rich.”
