Global billionaire tax could yield $250 billion annually, according to a study by the EU Tax Observatory. The study, which was released on October 23, 2023, found that a 2% tax on the global wealth of billionaires could raise $250 billion annually.
The study also found that the wealthiest 1% of the global population own more than half of the world’s wealth. This means that a billionaire tax would disproportionately impact the wealthiest individuals in the world.
The study’s findings have been met with support from some groups, such as Oxfam International, which has called for a 5% tax on the wealth of billionaires. Oxfam estimates that such a tax could raise $1.7 trillion annually, enough to lift 2 billion people out of poverty.
However, other groups have criticized the idea of a billionaire tax, arguing that it is unfair and that it would discourage investment. They also argue that it would be difficult to implement and enforce such a tax.
Despite the criticisms, the idea of a billionaire tax is gaining traction in some countries. For example, President Joe Biden has proposed a 23.8% minimum tax on the income of billionaires. The proposed tax would apply to households with more than $100 million in income.
It remains to be seen whether a global billionaire tax will ever be implemented. However, the study by the EU Tax Observatory provides evidence that such a tax could be a significant source of revenue for governments.
Here are some of the potential benefits of a global billionaire tax:
It could raise significant revenue that could be used to fund important public services, such as education and healthcare.
It could help to reduce wealth inequality.
It could discourage tax avoidance and evasion by billionaires.
Here are some of the potential drawbacks of a global billionaire tax:
It could be difficult to implement and enforce.
It could discourage investment.
It could be seen as unfair.
Overall, the idea of a global billionaire tax is a complex one with both potential benefits and drawbacks. It is important to weigh all of the factors involved before making a decision about whether or not to implement such a tax.