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Effective Billionaires-Tax of 2%

Tax Tax the rich Wealth tax billionaires Zucman

25.06.2024 | Gabriel Zucman & EU Tax Observatory | This report presents a proposal for an internationally coordinated standard ensuring an effective taxation of ultra-high-net-worth individuals. In the baseline proposal, individuals with more than $1 billion in wealth would be required to pay a minimum amount of tax annually, equal to 2% of their wealth. This standard could be flexibly implemented by participating countries through a variety of domestic instruments, including a presumptive income tax, an income tax on a broad notion of income, or a wealth tax.The report presents evidence that contemporary tax systems fail to tax ultra-high-net-worth individuals effectively, clarifies the case for international coordination to address this issue, analyzes implementation challenges, and provides revenue estimations. The main conclusions are that (i) building on recent progress in international tax cooperation, such a common standard has become technically feasible; (ii) it could be enforced successfully even if all countries did not adopt it, by strengthening current exit taxes and implementing “tax collector of last resort” mechanisms as in the coordinated minimum tax on multinational companies; (iii) a minimum tax on billionaires equal to 2% of their wealth would raise $200-$250 billion per year globally from about 3,000 taxpayers; extending the tax to centimillionaires would add $100-$140 billion; (iv) this international standard would effectively address regressive features of contemporary tax systems at the top of the wealth distribution; (v) it would not substitute for, but support domestic progressive tax policies, by improving transparency about top-end wealth, reducing incentives to engage in tax avoidance, and preventing a race to the bottom; (vi) its economic impact must be assessed in light of the observed pre-tax rate of return to wealth for ultra-high-net-worth individuals which has been 7.5% on average per year (net of inflation) over the last four decades, and of the current effective tax rate of billionaires, equivalent to 0.3% of their wealth.Link to executive summary: EU Tax Observatory. Link to full report: EU Tax Observatory.

Wealth inequality and Redistribution

Wealth Inequality US TaxTheRich

01.05.2023 | Stone Center for Inequality Dynamics |The concentration of wealth at the top is higher in the U.S. than in any other rich country. Is there such a thing as “too much” wealth? What if we decided there was? This video describes wealth inequality in the United States and a radical proposal of what to do about it. Just watch (it is truly stunning):

Intergenerational wealth transmission and homeownership in Europe

2022 | Cohen Raviv & Thomas Hinz | Intergenerational wealth transmission and homeownership in Europe–a comparative perspective Abstract The literature on social and wealth inequality has long acknowledged the importance of intergenerational wealth transmission (IWT) to inequality in homeownership tenure. However, it has paid insufficient attention to the institutional structures that moderate these inequalities. Therefore, in this study, we ask how institutional factors via differential housing finance systems and governmental housing policies, moderate the association between IWT and homeownership tenure. This is done by using the framework of housing regime configurations and mortgage market financialization. To do so, we pooled data for 20 European countries from the European Central Bank’s Household Finance and Consumption Survey (HFCS) for 2010-2017, for household heads aged 25-40. Our main findings show consistent contradiction to the welfare state-homeownership “trade-off” hypothesis: that is, when the rental market is more heavily regulated, it is actually young adults who benefited from IWT or who received higher value of IWT have a higher probability of mortgaged homeownership. Paradoxically, when housing finance institutions are more active and generous, the wealthiest young adults hold an advantage in mortgaged homeownership. Therefore, liberal mortgage markets actually serve to enable wealthier young adults to reproduce and preserve their parental wealth status. Further, when housing prices are less affordable (median mortgage-to-income ratio), those who have received a higher amount of IWT hold an advantage in mortgaged homeownership. We discuss the implications of our findings, which cut across the socioeconomic, spatial, and demographical arenas.

Earth for all

2022 | Club of Rome | Earth for All: A Survival Guide for Humanity Earth4All published its findings in September 2022 in the form of a book that is currently available in English and German. Chinese, Japanese, Korean and Italian versions will be available soon. The book is a survival guide to help steer humanity away from ecological and social catastrophe. Authors: Sandrine Dixson-Declève, Owen Gaffney, Jayati Ghosh, Jørgen Randers, Johan Rockström, Per Espen Stocknes Forewords: Christiana Figueres and Elizabeth Wathuti The book is the result of collaboration between the 21st century Transformational Economics Commission and systems analysts and modelling teams.

Global Wealth – BCG Report

09.06.2022 | Boston Consulting Group | Rise of 10.6% Is the Highest Annual Rate in More Than a Decade, Creating $26 Trillion in New Private Wealth, but Digital Leaders Threaten Traditional Players’ Dominance, According to a New BCG Report.

Nazi Billionaires

2022 | David de Jong | Nazi Billionaires. The Dark History of Germany’s Wealthiest Dynasties “Meticulously researched …compels us to confront the current-day legacy of these Nazi ties.” —Wall Street Journal A groundbreaking investigation of how the Nazis helped German tycoons make billions off the horrors of the Third Reich and World War II—and how America allowed them to get away with it. In 1946, Günther Quandt—patriarch of Germany’s most iconic industrial empire, a dynasty that today controls BMW—was arrested for suspected Nazi collaboration. Quandt claimed that he had been forced to join the party by his archrival, propaganda minister Joseph Goebbels, and the courts acquitted him. But Quandt lied. And his heirs, and those of other Nazi billionaires, have only grown wealthier in the generations since, while their reckoning with this dark past remains incomplete at best. Many of them continue to control swaths of the world economy, owning iconic brands whose products blanket the globe. The brutal legacy of the dynasties that dominated Daimler-Benz, cofounded Allianz, and still control Porsche, Volkswagen, and BMW has remained hidden in plain sight—until now. In this landmark work of investigative journalism, David de Jong reveals the true story of how Germany’s wealthiest business dynasties amassed untold money and power by abetting the atrocities of the Third Reich. Using a wealth of previously untapped sources, de Jong shows how these tycoons seized Jewish businesses, procured slave laborers, and ramped up weapons production to equip Hitler’s army as Europe burned around them. Most shocking of all, de Jong exposes how America’s political expediency enabled these billionaires to get away with their crimes, covering up a bloodstain that defiles the German and global economy to this day.

Realtime Inequality – Who benefits from Growth in the US?

2022 | Thomas Blanchet, Emmanuel Saez & Gabriel Zucman | Realtime Inequality – Who Benefits from Income and Wealth Growth in the United States? Realtime Inequality provides the first timely statistics on how economic growth is distributed across groups. When new growth numbers come out each quarter, the economists from Berekely show how each income and wealth group benefits.

Impacts of poverty alleviation on national and global carbon emissions

14.02.2022 | Benedikt Bruckner, Klaus Hubacek, Yuli Shan, Honglin Zhong, Kuishuang Fenf | Nature Sustainability | Bruckner et al. show that carbon footprints can reach several hundred tons of CO2 per year, while the majority of people living below poverty lines have yearly carbon footprints of less than 1 tCO2. Lifting more than one billion people out of poverty, leads to only small relative increases in global carbon emissions of 1.6–2.1% or less. Link: Nature.