August 6, 2021

Can higher taxes on the world’s wealthiest really reduce persistent inequalities? – RCI

On the eve of the Economic Forum in Davos, Switzerland, the NGO OXFAM reiterates its recommendation in its World Economic Forum (WEF) report and calls for a redistribution of the cards.

RCI avec OXFAM, Forbes,l’AFP, le PNUD et l'ONU

An imbalance that feeds anger and poverty

The OXFAM report underlines the need for the richest to pay their fair share of taxes in a world where the gap with the poorest continues to increase.

Poverty affects more than half of humanity today.

According to the United Nations Development Program (UNDP):

  • Over a billion people live on less than a dollar a day;
  • 2.8 billion people, nearly half of the world’s population, live on less than $ 2 a day;
  • 448 million children are underweight;
  • every day, 30,000 children under 5 die from preventable diseases;
  • more than a billion people do not have access to safe drinking water.
Credit: Wiki

OXFAM deplores the fact that 26 people concentrate in their hands as much money as all the poor put together, is 3.8 billion of people. This observation confirms the fact that poverty is increasing over the years.

In 2017, 43 people held the fortunes of half of humanity. In 2 years, this circle widened further and a good part of the rich came from Silicon Valley, where the giants of the high technology sector (Amazon, Facebook, Apple, Google, etc.) are constantly thriving.

Hold a scenario of these inequalities which describes the indisputable evidence, at the shocking limit and likely to offend the sensitivities:

Amazon boss Jeff Bezos single-handedly has a fortune that is peaking at 112 billion of dollars. By comparison, Ethiopia’s health budget is barely 1 % of this fortune, deplores OXFAM.

While in the poorest countries of the planet, like Burundi, the Central African Republic and Niger, the populations do not ask for more than to be able to eat a little when they are hungry, to find accommodation, to dress decently. , have access to basic infrastructure in terms of health, education, transport and other means of communication, 26 people are drunk with wealth and continue to get richer at a dizzying pace.

According to OXFAM, each of the 26 silver crowned heads would win every day 2.5 billion Furthermore. At the same time, half of the poorest would lose at the same time 11 % of what it holds.

To note :

The OXFAM methodology, based on the ranking of billionaires from Forbes and the figures of the bank Credit Suisse, is disputed by some economists.

Forbes notes that there has been little movement in the leading pack of the ranking of global billionaires concocted by its international teams apart from the rise of Jeff Bezos, the boss of Amazon, who downgrades Bill Gates with a fortune estimated at 112 billion dollars. Warren Buffet follows and fourth place goes to Bernard Arnault with a fortune estimated at 72 billion.

Acting through taxation: how effective?

The NGO believes that greater taxation of the richest would allow world governments to have sufficient resources to finance public services. At their current levels, the taxes demanded from the richest are very low, which increases their propensity to get richer to the detriment of the poorest who are moreover more taxed.

Last year, the wealthiest, whose number has doubled since the 2008 financial crisis, won 900 billion Furthermore. More generally, they would hide from the tax authorities 7600 billion, especially in countries like Brazil or the United Kingdom.

The higher taxation of the largest fortunes represents a significant avenue in the fight against inequalities and poverty which still hit many communities very hard, especially in the countries of sub-Saharan Africa.

The UN emphasizes the need to combine taxation with other elements to accelerate the pace of poverty reduction and achieve the goal of eradicating extreme poverty by the horizon 2030.

In particular, certain socio-economic factors, such as sex and gender, must be taken into account, as poverty affects men and women differently in many parts of the world.

Many governments are fueling this inequality crisis. Multinationals and the big fortunes are under-taxed, while essential public services, such as health and education, suffer from a dire lack of funding. The poorest people are paying the price for these policies. The human cost is considerable, and it is women and girls who suffer the most, notes OXFAM, which thus corroborates the observations of the UN.

It is also necessary to take into account the ethnic origin of the poor or the geography of the affected countries. The remoteness, the isolation, thehe climate change, the misappropriation of public funds and other economic shocks create food insecurity and compromise the populations’ access to certain basic necessities.

These are factors which mean that where efforts allow us to observe some progress in the fight against poverty, this progress is immediately slowed down, forcing an eternal restart of actions to get people out of the country. indigence. Thus, in addition to properly taxing the world’s great fortunes, it would be crucial that each country find lasting solutions to remedy these problems within 10 years.

Some 400 million people are deprived of access to drinking water in Africa. Credit: AFP

Here is the list of the 26 people who hold as much money as half of humanity

  • Jeff Bezos (Amazon) : 122 G$,
  • Bill Gates (Microsoft) : 90 G$,
  • Warren Buffett : 84 G$,
  • Bernard Arnault (LVMH): $ 72,
  • Mark Zuckerberg (Facebook) : 71 G4,
  • Amancio Ortega (Inditex): 70 G $,
  • Carlos Slim (magna telecom): $ 67.1 billion,
  • Charles Koch, David Koch (famille industrial): 60 G $,
  • Larry Ellison (Oracle) : 58,5 G$,
  • Michael Bloomberg : 50 G$,
  • Larry Page (Google) : 48,8 G$,
  • Sergei Brin (Google) : 47,5 G$,
  • Jim Walton : 46,4 G$,
  • S. Robson Walton : 46,2 G$,
  • Alice Walton (Wal-Mart) : 46 G$,
  • Ma Huateng (Tencent): 45.3 G $,
  • Françoise Bettencourt Meyers (L’Oréal): $ 42.2 billion,
  • Mukesh Ambani (Reliance Industries) : 40,1 G$,
  • Jack Ma (Alibaba): $ 39,
  • Sheldon Adelson (promoteur),
  • Steve Balimer (ex de Microsoft),
  • Li Ka-Shing (promoter, owner),
  • Hui Ka Yan (Evergrande),
  • Lee Shau Kee (Henderson),
  • Wang Jianlin (Dalian Wanda Group).