The richest 1% around the world has increased their wealth by an eye-popping figure of $42 trillion in the past 10 years only, while the rest of the world is struggling for crumbs, Oxfam has said in a report describing the level of economic inequality as obscene.
Oxfam describes itself as a global movement of people fighting inequality across geographies. The non-governmental organisation regularly publishes reports on inequality around the world and in different regions.
Rs 3,500 lakh crore in 10 years
According to current exchange rates, the figure $42 trillion works out to close to Rs 3,500 lakh crore.
Putting the $42 trillion figure in perspective, Oxfam said it was nearly 36 times more than the wealth accumulated by the poorer 50% of the global population.
The report by Oxfam comes against the backdrop of the impending G20 summit in Brazil. It will take place on November 18-19 this year.
Meeting under way in Rio De Janeiro
The finance ministers of G20 are now meeting in Rio De Janeiro in the run-up to the summit. According to reports, individuals with more than $1 billion in total assets should pay an amount equal to 2% of their wealth in income tax.
International cooperation on taxing the super-rich has been selected as a priority of Brazil’s presidency of the G20.
Several countries in favour of taxing super-rich
The US is reportedly against the move to determine a method to tax the ultra-rich though reports have indicated that countries such as France, Spain, South Africa, Colombia and the African Union are in favour of such an approach.
AFP has reported that Fernando Haddid, the finance minister of Brazil told the media that the final declaration will mention a proposal to tax the super-rich. However, he stopped short of revealing whether it will mention taxing them at 2%.
Oxfam has mentioned that almost 80% of the world’s billionaires live in the G20 economies. They “have been paying a tax rate equivalent to less than 0.5% of their wealth,” said the organisation.
Oxfam has suggested that the incredible wealth be subjected to an annual net wealth tax of at least 8%.
“Do they have the political will to strike a global standard that puts the needs of the many before the greed of an elite few?” remarked Oxfam International’s head of inequality policy Max Lawson.
Surging inequality has often been pointed out by economists as a scourge of the modern global economy. Oxfam’s report comes against the backdrop of a G-20 meet in Brazil exploring methodologies of taxing the super-rich of the world. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
