The richest 1 percent have amassed $42 trillion in new wealth over the past decade, nearly 34 times more than the entire bottom 50 percent of the world's population, according to new analysis by Oxfam today ahead of the third meeting of G20 Finance Ministers and Central Bank Governors in Rio de Janeiro, Brazil.
Here in Australia, billionaires have increased their wealth by 70.5% or $120 billion since 2020. Australians are increasingly concerned about this growing inequality and support a wealth tax to address it. This is evidenced by newly released YouGov polling commissioned by Oxfam. The polling shows:
- 76% of Australians are concerned about the growing wealth gap between the ultra-rich and everyday people
- 74% Support a wealth tax of people wit3h wealth of over $50 million
- 63% Support wealth tax proceeds being used to reduce inequality
The average wealth per person in the top 1 percent globally rose by nearly $400,000 in real terms over the last decade compared to just $335 – an equivalent increase of less than nine cents a day – for a person in the bottom half.
This week G20 Finance Ministers are expected to lay the foundations of a groundbreaking global deal to increase taxes on the super-rich. Championed by the Brazilian G20 Presidency and backed by countries including South Africa and France, the proposal comes amid growing public demand for measures to rein in extreme levels of inequality and ensure that the rich pay their fair share.
"Inequality in Australia and across the globe has reached obscene levels, and until now governments have failed to protect people and planet from its catastrophic effects," said Oxfam Australia Chief Executive Officer Lyn Morgain. "The richest one percent of humanity continues to fill their pockets while the rest are left to scrap for crumbs."
"Momentum to increase taxes on the super-rich is undeniable, and this week is the first real litmus test for G20 governments. 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?" Morgain said.
A "war on fair taxation" has seen tax rates on the wealth and income of the richest collapse. Oxfam has calculated that less than eight cents in every dollar raised in tax revenue in G20 countries now comes from taxes on wealth. Oxfam's research also found that the share of income of the top 1 percent of earners in G20 countries has risen by 45 percent over four decades while top tax rates on their incomes were cut by roughly a third.
Globally, billionaires have been paying a tax rate equivalent to less than 0.5 percent of their wealth. Their fortunes have risen by an annual average of 7.1 percent over the last four decades, and an annual net wealth tax of at least 8 percent would be needed to reduce billionaires' extreme wealth. G20 countries are home to nearly four out of five of the world's billionaires.
