- The richest 1% have collected two-thirds of the $42 trillion in new wealth created since 2020, by non-profit Oxfam in the UK.
- But at least 1.7 billion workers live in countries where inflation exceeds wages.
- Oxfam is calling on governments to impose much higher taxes on the super-rich to redistribute wealth.
Governments around the world must reduce the number of ultra-rich people by adopting “anti-billionaire policies”, Oxfam said in a report released on Monday.
The UK-based group of nonprofits said in the report that the wealthiest people have captured nearly two-thirds of the $42 trillion in new wealth created since 2020 – when the COVID-19 pandemic has begun. That’s twice as much as the remaining 99% managed to amass new wealth, Oxfam said, citing Credit Suisse data.
Reflecting this growing wealth disparity, at least 1.7 billion workers live in countries where inflation exceeds wages, according to Oxfam’s analysis of data from Eurostat, Trading Economics and consultancy Korn. ferry.
Oxfam is now advocating to halve wealth and the number of billionaires by 2030 through taxation and other measures to achieve a “fairer and more rational distribution of global wealth”.
It also calls for a permanent increase in taxes on the wealthiest to at least 60% of their income – in particular, Oxfam is calling on governments to raise capital gains taxes.
“We must do this for innovation. For stronger public services. For happier, healthier societies. And to tackle the climate crisis, investing in solutions that counter the mindless emissions of the wealthiest,” Gabriela Bucher, executive director of Oxfam International, said in the report.
Only four cents of every tax dollar comes from wealth taxes, according to Oxfam analysis based on data from the Organization for Economic Co-operation and Development.
Most wealthy people’s income is also ‘unearned’ and comes from the return on their assets – but it is taxed on average at 18% – just over half of the average top tax bracket on wages and salaries , according to the Oxfam study.
“Taxing the super-rich is the strategic prerequisite for reducing inequality and resuscitating democracy,” Bucher said in the report.
Oxfam released its report just as the World Economic Forum kicks off Monday in Davos, Switzerland.