A new report by the Tax Justice Network (TJN) highlights how countries, including Greece, could significantly boost their revenues by adopting a wealth tax modelled after Spain's approach.
The report estimates that globally, governments could raise over $2 trillion by implementing a progressive tax on extreme wealth, helping to address challenges like climate change, the cost of living crisis, and mounting national debts.
The Spanish model, introduced by Prime Minister Pedro Sánchez's government in late 2022, features a temporary "solidarity tax" on net wealth. This tax, which is expected to bring in over three million euros annually in 2023 and 2024, targets the wealthiest households at a rate of 0.5%. The TJN study suggests extending this tax to all categories of wealth, unlike the current Spanish law, which exempts assets like shares in listed companies, intellectual property, and luxury items such as yachts and aircraft.
If Greece were to implement a similar wealth tax, the TJN estimates that it could generate over €700 million annually from the richest 0.5% of Greek households. This move could provide crucial funds to tackle national challenges and contribute to global efforts to combat climate change.
Alison Schultz, a research fellow at the Tax Justice Network, emphasised the urgent need for such reforms, noting that while many countries are working towards more equitable global tax rules, a few wealthy nations are still resisting meaningful change. Schultz argued that the global community cannot afford to delay action, especially with climate change and economic inequality becoming increasingly pressing issues.
While discussions on taxing the super-rich are ongoing globally, including among G20 nations, no consensus has been reached on a global tax rate. The G20 finance ministers, meeting recently in Rio de Janeiro, pledged to cooperate on taxing the wealthiest but stopped short of agreeing on specific measures.
Read more: Greek tax
(Source: In.Gr)