Top 1 per cent bags over $40 trillion in new wealth during past decade as taxes on the rich reach historic lows
Oxfam Australia Media Release
The richest 1 per cent have amassed $42 trillion in new wealth over the past decade, nearly 34 times more than the entire bottom 50 per cent 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 with 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 per cent 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 per cent of their wealth. Their fortunes have risen by an annual average of 7.1 per cent over the last four decades, and an annual net wealth tax of at least 8 per cent would be needed to reduce billionaires’ extreme wealth. G20 countries are home to nearly four out of five of the world’s billionaires.
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9 comments
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Katie
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Phil Pryor
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JulianP
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leefe
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Arnd
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Ken
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John C
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Clakka
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New England Cocky
Return to home pageIs anyone really surprised by this “revelation”? Truly, as long as we have (or had) elitist, self-serving right-wing regimes in power, the most obscenely rich and corrupt parasites in the nation will go on and on getting richer and richer. Corrupt elitist right-wing regimes like the LNP in Australia, the Republican movement in the USA and the condescending Tories in the UK will ensure that their rusted-on supporters in the Top 1% are rewarded by paying less (or no) tax at the expense of over-taxing ordinary working- and middle-class constituents! This has been evident for decades and will only become worse whenever, and wherever, such totally biased right-wing regimes are allowed to rise to elitist power and ensure that blatant preferential treatment is given to the wealthiest, most corrupt and avaricious group of elitists in our society. This is WHY it is essential to ensure that an egalitarian political party (like Labor) are kept in power to ensure that such open favouritism to the Top 1% is NOT allowed to divide our society into the “have and have nots” as it so clearly became in the UK under the snobbish elitism of a succession of Tory regimes! Australia is widely regarded as one of the fairest, most egalitarian nations on the planet BUT this can only continue if Australians ensure that the unspeakably depraved, self-serving plutocrats in the LNP are kept in OPPOSITION indefinitely!
Gladstone called “them” the “top ten thousand”, those in the families that filled out the House of Lords, the poxnest of pustuarity, as well as the full picture of royalty, nobility, clergy, gentry and the same types in growing finance, industry, banking, high civil service, military and squirearchy. It is still a truism that one percent of the U K population can trace some line back to William the conquering murderer, thief, oppressor and vanity promoter, while they control c. 40% of U K wealth through old money, connections, holdings. The hidden story is that families like mine left Britain in despair, having suffered and been ignored and denied. Yet in Australia, some relatives have been high court Chief Justice, solicitor-general, university medallists, many top academics and sporting types etc., through opportunity derived from some social justice, some democratically organised opportunity., the chance in life we all want and deserve. So, let us join Katie in condemning the excesses of some in the top 1% who fight for selfishness, exclusivity, righteous selfpromotion, ostentation, greed, overbearing power, violence, indifference, posing while stupid, boasting while ignorant. Scum.
Having regard to comments by Steve Davis, Dennis Hay and others re: neoliberalism, I was discussing this and other relevant issues with a mate, and while it was easy to agree that systemic change was overdue, I was stumped by a final question: “Of what possible societal use are billionaires?”
Apart from thinking: “Not much”, or “It all depends”, I’m still casting for a reply that does justice to all parties, at the same time keeping in mind Voltaire’s vision for the state.
Any suggestions?
Julian:
The old line “eat the rich” comes to mind, although they’d probably make for a very unhealthy diet. Pig food, perhaps? Shark bait. Feeding time at the zoo? Compost?
As sort of a pin cushion for pitchforks?
The wealthy are not supported by only right-wing regimes. A bit over a year ago Albo, the Aussie Neo-Marxist, was sitting in a room full of conscience-free Labor ministers discussing the cost of living crisis and the notion that rent caps should be considered. The PM said something to the effect any introduction of rent caps would not impact on landlords as they could increase rents higher than the CPI. He either doesn’t understand that increasing rents above the CPI increases the overall CPI or he is just plain cunning.
@Arnd.
Worth a read. Pity that many other billionaires don’t see the pitchfork scenario coming. I agree with him, it WILL happen, not if but when.
Indeed the pitchforks are coming. So mean those in their sieges, perhaps they will eat each other? Perhaps we can exercise fairness by offering them alternatives ….. come out, hands in the air, or pay ginormous wealth taxes along with a mandatory Le Grand Boeff
Either way, the pitchforkers get to clean up the shite.
I like the Czech idea of jailing rich bludgers for one year for each million dollars that they have grifted out of the tax system by using the legal Australian tax minimisation provisions.
We could start with retiring politicians to set the community example – $us$san LeyZee for real estate purchases at public expense, Anus Taylor for an $80 MILLION empty glass of MDB water (keep him out of politics for life), Beetrooter for his overseas travel rots attending Indian weddings, to name just a few.
Then the bankers & corporate executives earning multiple millions could be jailed for life given the exorbitant salary packages that they are granted by their director mates ….. they would also be out of circulation for quite a while.
Finally the religious organisations claiming social benefits for the community while sucking the financial teat of a council rates free existence.