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The Guardian
Wealth tax on super-rich could raise £1.5tn globally, campaigners say
By Richard Partington Economics correspondent,
17 hours ago
The study excluded some exemptions in the Spanish tax – including a clause on high-value assets like boats and aircraft – and said $31bn a year could be raised in the UK alone. Photograph: Valéry Hache/AFP/Getty Images
Governments around the world copying Spain’s wealth tax on the super-rich could raise more than $2tn (£1.5tn), according to campaigners calling for the money to help finance the climate transition.
As a growing numbers of countries consider raising taxes on the ultra-wealthy , the Tax Justice Network campaign group said in a report that evidence from a “featherlight” tax on the 0.5% richest households in Spain could help raise trillions of dollars globally each year.
The Spanish government, under the socialist prime minister, Pedro Sánchez, introduced a temporary “solidarity” wealth tax in late 2022 , which is collected in 2023 and 2024, on the net wealth of individuals exceeding €3m (£2.6m). It is estimated to apply to the richest 0.5% of households.
The Tax Justice Network said applying a similar tax on the top 0.5% wealthiest households worldwide, at a rate of between 1.7% and 3.5%, would raise about $2.1tn. The study excluded some exemptions in the Spanish tax – including for shares in listed companies, intellectual property and industrial property, and some high-value assets such as boats and aircraft.
It said as much as $31bn a year would be raised from the UK.
However, reaching any agreement is likely to take years, and could face opposition in several countries.
Alison Schultz, a research fellow at the Tax Justice Network, said: “A minority of rich countries still seem to be holding back from support for a robust framework convention on tax – despite this being the best opportunity that we’ve ever had, and one that their own people demand they act on with urgency.
“This needs to change now – the climate can’t wait, and nor can the people of the world.”
Despite headlines warning that the ultra-wealthy could move elsewhere, the Tax Justice Network said previous reforms in some nations had not resulted in the super-rich relocating.
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