EU, over 130 MEPs are calling for a tax on the ultra-rich

More than 130 members of the European Parliament have signed a petition asking for the introduction of a tax on the assets of those he defines as ultra-rich. It would apply internationally and would serve to contribute to the costs of the ecological and social transition. “What we have managed to achieve for the multinationals, we must now do for the rich”, write the promoters: the French MEP Aurore Lalucq of the Socialists and Democrats group and the economist Gabriel Zucman.

The minimum global tax of 15% on multinational enterprises is expected to come into effect this year. For owners of large estates the rate would be the same. Assets of at least 50 million euros would be affected. “Our proposal is simple: introduce a progressive tax on the wealth of the ultra-rich on an international scale to reduce inequalities and help finance the investments necessary for the ecological and social transition”, explained the two in an article published on Le Monde.

The petition was signed mainly by MEPs green and left, from a dozen economists and by international NGOs including Oxfam. The invitation is addressed to governments and international organizations: OECD, EU, United Nations. They offer examples such as that of Elon Musk who in 2018 did not pay federal taxes in the US.

The US government is working on a similar proposal. The president of the United States Joe Biden he will propose that Congress approve a minimum tax of 25% for billionaires. The president also plans to almost double the tax on capital gains, financial gain, from 20% to 39.6%, and also to raise the levies on the income of large companies and the very wealthy Americans. The goal here is to reduce the federal deficit. Republican opposition will be tough, and Democrats don’t have total control over Parliament.

Biden’s proposal calls for the top 0.01% of Americans to pay a tax rate of at least 25%. The top tax rate for Americans earning $400,000 would rise from 37% to 39.6%. For investors who earn at least $1 million, the tax goes from 20% to 39.6%.

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