The EU wants to introduce a tax for the super rich

More than 130 MPs have signed a petition calling for the introduction of a household wealth tax “ultra rich” on an international scale to finance ecological and social change. The proposal promoted by the French MEPs Aurora Lalucq and from the economist Gabriel Zucmandelivers aProgressive tax of 1.5% on assets of at least 50 million euros.

According to the drafters of the proposal, introducing a tax on the wealthy would help to reduce inequalities and finance the investments needed for ecological and social change. The landmark deal on a global minimum tax of 15% for multinationals is due to come into force later this year, but Lalucq and Zucman are demanding equal attention be paid to taxing the wealthy.

In the article published in the newspaper “Le Monde”, the authors of the proposal call on the OECD and the United Nations to start negotiations on the tax and on the European Union to act. According to Lalucq and Zucman, Taxing the rich is necessary because many large fortunes evade taxes and cause great damage to public finances.

The petition was signed mainly by Green and Left MPs, a dozen economists and international NGOs, including oxfam. According to the proposal’s authors, taxing the rich is a necessary step for to make the distribution of wealth more equitable and to finance the fight against climate change and social inequality.

In France, the 370 richest households are actually only taxed at around 2 or 3%. Lalucq and Zucman argue that what has been accomplished for corporations must now be done for the rich, as taxing the rich can help create a more just and sustainable world.