The 'featherlight' wealth tax introduced in Spain less than two years ago raised hundreds of millions of euros last year by taxing the net worth of the 0.5% richest households, showing the potential effectiveness of similar models globally.
Collected wealth is typically taxed at far lower rates than earned wealth, while growing faster. Only half of the wealth created around the world each year goes to working individuals.
This two-tier tax system enables billionaires to pay half the tax rates of average earners, contributing to escalating inequality with the wealth of the richest 0.0001% quadrupling since 1979.
With a focus on climate finance for the Global South, the Tax Justice Network's proposal for a global wealth tax appears timely, promising to raise significant funds for clean energy transitions.
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