Tax Justice Network Proposes Global Wealth Tax

A report from the Tax Justice Network advocates for implementing a wealth tax similar to Spain's, which could generate approximately $2.1 trillion globally by targeting the wealthiest 0.5% of households. Spain's temporary 'solidarity' wealth tax, introduced in late 2022, applies to individuals with net wealth exceeding €3 million and is projected to help finance climate transition efforts. The report indicates that the UK could potentially raise about $31 billion annually from such a tax, which would affect around 258,000 individuals and progressively rise from 1.7% to 3.5% for the top earners. Campaigners stress that addressing extreme wealth inequality is crucial, highlighting that the super-rich often pay lower tax rates than average workers. While support for similar measures is growing among several countries, achieving a global consensus on a wealth tax remains challenging. Experts argue that previous tax reforms targeting the wealthy have not led to significant relocation, countering fears of capital flight.