About the law of the richest

The world has not fully recovered from the COVID pandemic that has caused inflation to outpace the wages of at least 1.7 billion workers

Like every beginning of the year, last weekfor the forum International Economy (WEF) in Davos, Switzerland, which Collecting to the main political leaders, private initiative and civil society, to discuss issues of first importance from the global agenda. Andnumber Opening of the World Economic Forum 2023And International Organization OxfamAnd dedicatea a Fighting inequality and poverty around the world, it launched its report “Survivalor the richer“, Titled in Spanish “The Law of the Richest”.

We must remember thatsocial problem Inequality is gaining more prominence on the international public agenda thanks to a bookFrench economist Thomas Piketty“the c.DC in s21st century” (2014)which address clearly Indicates for the work of karl marx, “Capital“ (1867) which, while not specifically dealing with income inequality, does address the painful difference between the working class and the owners of capital. for his part, Piketty Shows that the system of capitalism Present led to Elderlyconcentration of wealththat It causes social and economic instabilityTo reverse this trend, the author proposes a global system of progressive wealth taxes.

Almost ten years after the publication of Works PikettyAnd Oxfam reports that this trend (increasing concentration of wealth) continues, because two-thirds of the wealth generated since 2020 ($42 trillion) is concentrated in just 1% of the population.. Moreover, the report makes it clear yesOnly 4 cents of every dollar of tax revenue comes from wealth or estate taxes sContrary to the recommendation of the French economist, in the last 40 years governments everybody Tax rates were lowered for its wealthier residents.

OXFAM reports that This situation I know Gifts In an environment of simultaneous crises in which The world is not finished recovering from the COVID pandemic that has killed 20 million people, Poverty increased for the first time in 25 years, Inflation has exceeded the wages of at least 1.7 billion workers, a third of the global economy will enter recession this year and for the first time the human development index has fallen by 9 out of 10. Countries. However, billionaires globally have seen their earnings soar during the coronavirus crisis. In rich countries, gMassive amounts of Public resources were injected into their economies in order to support their populations, but they also had the effect of increasing prices andSo, from the wealth ofAndIts variety was indeed extremely rich.

The foregoing is clear evidence, as OXFAM asserts, of a failure in the economic system that favors those who have more than argument, which has no basis but has managed to firmly establish itself. across the worldthat the low taxes and high profits of the capitalist elite will benefit the whole of society, because they generatera More investment and therefore more jobs. howeversaid the introduction Not only is this wrong, but it turns out to be trueAndThe people who pay the most in taxes earn the least: it’s estimated from the same organizationElon Musk (tesla) pay a tax rate of 3.2% and even Jeff Bezos (Amazon, $13) It pays less than 1%, while Open Christine, one of the Ugandan traders they work with OxfamYou pay 40% tax on your income.

Hence, the report intends to highlight at least one of the solutions to reduce the accumulation of wealth by those who have the most and which has been shown to be one of the most effective tools to combat inequality: gPreying on the Rich To do this, the organization proposes that the world look to cut the wealth and number of billionaires in half by 2030, by raising taxes on the top 1% and notes that the ultimate goal should be to go ahead and eliminate billionaires altogether, as part of a fairer and more rational distribution of global wealth. .

Oxfam estimates that wealth tax rate 2% a Millionaires everything the scientist, from 3% for those with more than $50 million and 5% for billionaires, means raking in $1.7 trillion annually. This amount would allow Rescuing two billion people from poverty, in addition to creating a fund to eradicate hunger, mitigate the effects of the climate change crisis, and provide universal medical coverage for all people low income

In addition, the organization believes that every country should implement a tax mix that ensures the top 1% pay much higher taxes, for example, a 60% tax rate on their income and higher rates for the poorest billionaires. It should be remembered that wealth tax refers to wealth (in most countries there are no inheritance taxes) and that it differs from income tax.

This MondayAnd Oxfam published a report on the same problem, But she focused on the case of MexicoAnd Entitled Who Pays the Bill?, the myths behind taxes on large corporations Riches in Mexico”, i.e. AbuI will submit in the next installment to Watch cAs forMo completes businessAndwhat’s here also We have indicatedAnd Written by Ferry Rios (It’s Not Normal, 2021) and Raimundo Campos (Inequality, 2022).

Now, let’s remember the phrase From the eighteenth century itstill valid Today more than ever It was specifically formulated by a friend and ally of Carlos Marx, Friedrich Engels: “Same as new Societyduring the two thousand five hundred years of its existence, it has been no more than Development small minority at the expense of the vast majority of the exploited and oppressed; This is today more than ever emphasis. “

* The author is the Secretary General of the House of Representatives of the Federal Congress.