The Tax Justice Network said trillions could be raised with a ‘featherlight’ tax on the 0.5% of richest households, copying a current Spanish tax

The Tax Justice Network said trillions could be raised with a ‘featherlight’ tax on the 0.5% of richest households, copying a current Spanish tax

Governments around the world copying Spain’s wealth tax on the super-rich could raise more than $2tn (£1.5tn), according to campaigners calling for the money to help finance the climate transition.

As a growing numbers of countries consider raising taxes on the ultra-wealthy, the Tax Justice Network campaign group said in a report that evidence from a “featherlight” tax on the 0.5% richest households in Spain could help raise trillions of dollars globally each year.

The Spanish government, under the socialist prime minister, Pedro Sánchez, introduced a temporary “solidarity” wealth tax in late 2022, which is collected in 2023 and 2024, on the net wealth of individuals exceeding €3m (£2.6m). It is estimated to apply to the richest 0.5% of households.

  • Nougat@fedia.io
    31·
    2 months ago

    That seems painfully simple to make an exception for: assets you are not legally allowed to sell, transfer, convert, use as collateral would be excluded.

    • MoonManKipper@lemmy.worldEnglish
      56·
      2 months ago

      And that creates a loophole that is trivially easy to exploit, which is the problem. I simply wrap up any asset I want to hold onto into a fund or trust that stops me doing the above…

      • Nougat@fedia.io
        61·
        2 months ago

        If the asset was ever legally liquid while in your possession, it qualifies for the tax.

        • MoonManKipper@lemmy.worldEnglish
          35·
          2 months ago

          Something can be legally liquid, but not practically liquid. Like a house. For example the Board of the company could give me permission to sell, but why would they?

          • tburkhol@lemmy.worldEnglish
            10·
            2 months ago

            You know that people pay taxes on the wealth embodied in their house, every year, right? Not even their equity in the house, but the full value - both the piece they own and the piece the bank still owns. Their primary residence is most of the wealth for most of the middle class, so we already have a wealth tax for everyone but the ultra-wealthy.

          • Nougat@fedia.io
            7·
            2 months ago

            I’m sure you’re also aware of tax brackets? The same concept can be applied to wealth tax: legally liquid assets above a certain threshold would be taxable. Owner-occupied homes would be exempt.

            This is a lot easier than you think.