The case for a wealth tax becomes stronger every day
“Tax extreme wealth to pay for the climate-related damage to the poorest, a group of more than 100 leading economists have urged.This is the beginning of a short article in today’s “Guardian”. I very much support the case for a wealth tax. We need such a tax to support countries hit by climate change and to boost national government programmes addressing healthcare. Some 14 years ago, I wrote a short article which featured debate in the British political arena over the introduction of a wealth tax. You can read it here.A wealth tax on the fortunes of the world’s richest people would raise trillions of dollars that could be spent on helping poorer countries shift their economies to a low-carbon footing, and on “loss and damage”, the rescue and rehabilitation of countries stricken by climate disaster.
A 2% tax on extreme wealth would yield about $2.5tn a year, by recent estimates.
The economists, including the prominent degrowth advocate Jason Hickel, have written a letter to world leaders before a global summit on finance this week. They are calling for a tax of 1.5% for 1.5C to help ensure the world limits global temperature rises to 1.5C above pre-industrial levels.”