Joseph Stiglitz: tax high earners at 70% to tackle widening inequality | The super-rich

Joseph Stiglitz, the Nobel prize-winning Keynesian economist, has known as for the super-rich to be subjected to taxes as high as 70% to assist tackle widening inequality.

Stiglitz, who received the Nobel prize in economics in 2001 and pioneered many concepts about globalisation and inequality, stated introducing a particular worldwide revenue tax charge of 70% on the best earners “would clearly make sense”.

“People at the highest would possibly work a bit bit much less in case you tax them extra. But however, our society positive factors in having a extra egalitarian, cohesive society,” the previous World Bank chief economist, 79, instructed Oxfam’s Equals podcast.

Currently, the highest charge of revenue tax within the UK is 45% on annual earnings above £150,000. In the US, the best charge of tax is 37% on earnings above $539,901.

Stiglitz stated that whereas a rise within the prime charge on revenue would assist lead to a extra equal society, introducing wealth taxes on the fortunes gathered by the world’s wealthiest over many generations would have a good greater influence.

“We ought to be taxing wealth at the next charge, as a result of a lot of the wealth is inherited wealth, [for example] – the younger Walmarts, inherited their wealth,” he stated.

“One of my pals describes [this] as successful the sperm lottery – they selected the suitable dad and mom. I feel we have now to realise that a lot of the billionaires have gotten a lot of their wealth out of luck.”

He described proposals by US senator Elizabeth Warren for a 2% tax on people with assets of more than $50m and 3% on those with more than $1bn as “very cheap” and stated they “would actually go a good distance to elevating revenues that would alleviate a few of our nation’s issues”.

Stiglitz stated the Covid-19 pandemic had worsened inequality to an “astounding” diploma, arguing it “each uncovered world inequalities, and exacerbated them”.

“In a interval the place so many individuals discovered life so tough, with shedding their jobs, now coping with meals costs and oil costs going up, it’s stunning how many individuals and wealthy companies made off like bandits,” he stated.

Research printed by Oxfam final week confirmed virtually two-thirds of the brand new wealth amassed for the reason that begin of the pandemic has gone to the richest 1%. The charity discovered the best-off had pocketed $26tn (£21tn) in new wealth up to the tip of 2021. That represented 63% of the whole new wealth, with the remainder going to the remaining 99% of individuals.

Oxfam stated for the primary time in 1 / 4 of a century the rise in excessive wealth was being accompanied by a rise in excessive poverty. The charity stated a tax of up to 5% on the world’s multimillionaires and billionaires might elevate $1.7tn a yr, sufficient to elevate 2 billion individuals out of poverty, and fund a worldwide plan to finish starvation.

More than 200 members of the super-rich elite final week known as on governments world wide to “tax us, the ultra rich, now” to assist deal with the inequality disaster.

The group of 205 millionaires and billionaires, together with the Disney heiress Abigail Disney and The Hulk actor Mark Ruffalo, known as on world leaders and enterprise executives assembly in Davos for the World Economic Forum to urgently introduce wealth taxes to assist tackle “excessive inequality”.