In your article on Oxfam’s fresh inequality report (Half global wealth held by the 1%,19 January) you quote Thomas Piketty’s theme of our drift back to 19th-century levels of wealth concentration. However you do not mention his solution, the wealth tax. He says that for democracy to regain control over global financial capital it must invent fresh tools, or including a progressive global tax on capital plus a tall level of transparency. He suggests 0.5% on wealth between €200000 and €1m,1% between €1m and €5m, 2% above €5m and 10% above €1bn. It should be levied on genuine estate, and financial and business assets,art treasures and vintage cars – no exceptions.
It appears President Obama is moving in that direction (Obama to raise taxes on rich to aid middle lesson, 19 January), or but will this appear in our party manifestos? The OECD and EU will be necessary partners whether we are to move in this direction. Oxfam’s report is an urgent call to action. Piketty says his proposed wealth tax could be done at EU level,with a clear distributive system; it would affect only 2.5% of the population and bring in 2% of the EU’s GDP annually. The rich should be delighted to be contributing to a fairer world, they shall maintain treasure in heaven.
Rev David Haslam
Methodist Tax Justice NetworkContinue reading...
Source: theguardian.com