Nobel Prize Winner Stiglitz wants 70% tax on top incomes
5 min read
Joseph Stiglitz, the recipient of the Nobel Prize, expresses worry over the growing disparity in social status across the globe. The division between the wealthy and the impoverished is expanding. In order to counteract this trend, he advocates for the affluent individuals to contribute more through an increased income tax and a wealth levy. Stiglitz suggests that implementing a global tax rate of 70 percent specifically for high earners would be a logical step forward.
The former chief economist of the World Bank explained in Oxfam’s “Equals” that if you increase taxes on those at the top, they may choose to work slightly less. However, it is important to consider that our society would gain from having a more equal and cohesive society.podcast, summarizedThe Guardian, a British newspaper, reported this information.
of Stiglitz’s proposed tax reforms include increasing the current top tax rates.
- In the U.S., the top tax rate is 37 percent for incomes above $539,901.
- The highest tax rate in the United Kingdom is 45 percent for yearly earnings exceeding 150,000 pounds.
- In Austria, the rate is 55 percent, but only for annual incomes above one million euros.
- In Germany, the top tax rate is paid from an annual income of around 278,000 euros—it is 45 percent.
Only four European Countries have a wealth tax: Spain, Norway, Switzerland, and Belgium.
Joseph Stiglitz: Getting rich is a question of chance—not performance
Stiglitz explained in the podcast that such a new, higher top tax would lead to more redistribution—but at the same time one must also tax wealth fairly. Because that way, the richest people in the world would make a fair contribution, whose wealth has been accumulated over generations. According to Stiglitz, a global wealth tax would have an even greater impact in combating social inequality.
“We need to impose higher taxes on wealth since a significant portion of it is currently passed down through inheritance. Stiglitz provided the example of the younger generation of Walmart heirs who inherited their wealth.”
One of my acquaintances characterizes it as being fortunate in the genetic lottery. You were born to the ‘right’ parents. I believe it is important to acknowledge that a significant portion of billionaires acquired their wealth primarily through sheer chance.
The recipient of the Nobel Prize finds U.S. Senator Elizabeth Warren’s suggestions regarding a 2 percent tax on wealth exceeding $50 million and a 3 percent tax on wealth surpassing $1 billion to be “highly sensible.” According to him, implementing these measures would significantly contribute to generating funds that could be utilized to address various challenges our nation confronts.
The wealthy have become even wealthier due to the crisis.
Stiglitz argues that the Corona pandemic has significantly worsened social inequality on a global scale, reaching an “astonishing” level. It has not only revealed but also intensified existing global inequalities.
Stiglitz criticized the fact that amidst widespread hardships, such as job losses and increased food and oil prices, numerous individuals and wealthy corporations have managed to benefit greatly, resembling bandits.
According to a study by Oxfam, both extreme wealth and extreme poverty are increasing at the same time, marking a significant change after a period of 25 years.
According to a recent study conducted by Oxfam, it was revealed that the wealthiest 1 percent have received almost two-thirds of the wealth gained during the pandemic. Oxfam also discovered that by the end of 2021, the richest individuals will have acquired $26 billion in additional assets. This amount accounts for 63 percent of all new wealth, while the remaining 99 percent of the population will receive the remaining portion.
For the first time in 25 years, the surge in immense wealth has coincided with a rise in severe poverty.
The charitable organization stated that implementing a tax of no more than 5 percent on individuals with vast wealth could generate $1.7 trillion annually for global purposes. Consequently, this amount would be sufficient to alleviate poverty for 2 billion individuals and eradicate hunger worldwide.
Oxfam spokesperson Manuel Schmitt stated that amidst the struggles faced by millions who lack the means to afford basic necessities like food and energy, the current crises are resulting in substantial wealth gains for billionaires and their spouses.
200 super-rich call for global wealth taxes
More than 200 members of the super-rich elite have written to governments around the world in the run-up to the World Economic Forum in Davos calling on them to “tax us, the super-rich, now” to tackle the crisis of inequality. “Patriotic Millionaires”, “Tax me Now” and “Millionaires for Humanity” were behind the campaign.
Abigail and Tim Disney, who are heirs to Disney, along with Mark Ruffalo, the actor known for his role as “Hulk,” are among the individuals who have signed.Marlene EngelhornA participant from Austria also took part in the protest—she personally delivered the letter at the location.
Phil White and Marlene Engelhorn demonstrate their opposition to the World Economic Forum in Davos.
It’s time to #TaxTheRich. pic.twitter.com/QwV7aWMPEP
— Patriotic Millionaires (@PatrioticMills) January 17, 2023
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