Demonstrators call for higher taxes on the rich during a protest in Davos, Switzerland on January 19, 2025.
To Crush Global Inequality and Secure Livable Future, Scholars Call for 90% Tax on Mega-Rich
"The current international order is plutocratic," said French economist Thomas Piketty. "It is essential to move away from this plutocratic system to a new democratic order."
A sprawling report released Thursday argues that averting the "bleak techno-authoritarian futures now being sold to us" and laying the groundwork for a just, livable future requires restructuring the world's economic order to widely redistribute wealth that has been hoarded at the very top for decades.
The report, compiled by hundreds of researchers from around the world and published by the World Inequality Lab (WIL), is billed as the first comprehensive attempt to lay out a plan to "reconcile planetary habitability and high well-being for all." Achieving that aim will be impossible, the authors argue, "without a drastic reduction in inequality of income, wealth, and power."
"The current international order is plutocratic," said French economist Thomas Piketty, a renowned expert on inequality and co-director of WIL. "It is essential to move away from this plutocratic system to a new democratic order."
The report outlines a number of proposals that would redress staggering levels of wealth and income inequality. Currently, the top 10% of the global population brings in more income than the remaining 90% combined. Wealth inequality is even more extreme, with the top 10% controlling 75% of global wealth, compared to 2% controlled by the poorest half of humanity.
Specifically, the authors call for a new, progressive global income tax that would peak at 90% for those who earn 5,000 times the average adult disposable income. They also propose taxing the wealth of millionaires and billionaires at a rate up to 20%.
Revenue from the new taxes would flow into a Global Justice Fund, which would distribute dividends to countries to help boost spending on climate, education, and healthcare. The fund would also invest in a World Sovereign Fund, whose returns on "sustainable assets" would be used to finance country dividends.
"The result is not a transfer from many to few but a gain for almost everyone," Piketty and other report contributors wrote in an op-ed for The Guardian. "Close to 90% of the world’s population would double their income between 2026 and 2100, and once leisure and a habitable planet are counted, more than 99% come out ahead."
"Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical."
Redressing inequality would not be sufficient to secure a livable future, the report authors emphasize, given that continued fossil fuel use and expansion are pushing the world in the direction of climate catastrophe. What's required to prevent planetary disaster is a "fundamental transformation of energy systems," the report argues.
"This means electrifying energy demand wherever feasible (such as transitioning vehicle fleets) and switching to low-carbon fuels (for example, in steel and cement production)," the report states. "Crucially, electricity generation itself must be decarbonized, moving away from fossil fuels toward renewables like hydropower, solar, and wind."
The report also envisions a move away from overconsumption toward what the authors call a future of "sufficiency," which would entail shorter work hours for the global labor force, changes to land use, and other reforms.
Such ambitious goals will not become reality, the report stresses, without "a powerful citizen movement and a dense network of broad-based organizations (including labor unions, political parties, civic platforms, and other collective initiatives) which are sufficiently well-organized and effective at promoting broad institutional and policy change."
"A habitable, equal, and prosperous 21st Century is materially possible," the authors declare. "Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical. What it will take instead is political choice, and the hard work of coalition-building behind it."
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
A sprawling report released Thursday argues that averting the "bleak techno-authoritarian futures now being sold to us" and laying the groundwork for a just, livable future requires restructuring the world's economic order to widely redistribute wealth that has been hoarded at the very top for decades.
The report, compiled by hundreds of researchers from around the world and published by the World Inequality Lab (WIL), is billed as the first comprehensive attempt to lay out a plan to "reconcile planetary habitability and high well-being for all." Achieving that aim will be impossible, the authors argue, "without a drastic reduction in inequality of income, wealth, and power."
"The current international order is plutocratic," said French economist Thomas Piketty, a renowned expert on inequality and co-director of WIL. "It is essential to move away from this plutocratic system to a new democratic order."
The report outlines a number of proposals that would redress staggering levels of wealth and income inequality. Currently, the top 10% of the global population brings in more income than the remaining 90% combined. Wealth inequality is even more extreme, with the top 10% controlling 75% of global wealth, compared to 2% controlled by the poorest half of humanity.
Specifically, the authors call for a new, progressive global income tax that would peak at 90% for those who earn 5,000 times the average adult disposable income. They also propose taxing the wealth of millionaires and billionaires at a rate up to 20%.
Revenue from the new taxes would flow into a Global Justice Fund, which would distribute dividends to countries to help boost spending on climate, education, and healthcare. The fund would also invest in a World Sovereign Fund, whose returns on "sustainable assets" would be used to finance country dividends.
"The result is not a transfer from many to few but a gain for almost everyone," Piketty and other report contributors wrote in an op-ed for The Guardian. "Close to 90% of the world’s population would double their income between 2026 and 2100, and once leisure and a habitable planet are counted, more than 99% come out ahead."
"Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical."
Redressing inequality would not be sufficient to secure a livable future, the report authors emphasize, given that continued fossil fuel use and expansion are pushing the world in the direction of climate catastrophe. What's required to prevent planetary disaster is a "fundamental transformation of energy systems," the report argues.
"This means electrifying energy demand wherever feasible (such as transitioning vehicle fleets) and switching to low-carbon fuels (for example, in steel and cement production)," the report states. "Crucially, electricity generation itself must be decarbonized, moving away from fossil fuels toward renewables like hydropower, solar, and wind."
The report also envisions a move away from overconsumption toward what the authors call a future of "sufficiency," which would entail shorter work hours for the global labor force, changes to land use, and other reforms.
Such ambitious goals will not become reality, the report stresses, without "a powerful citizen movement and a dense network of broad-based organizations (including labor unions, political parties, civic platforms, and other collective initiatives) which are sufficiently well-organized and effective at promoting broad institutional and policy change."
"A habitable, equal, and prosperous 21st Century is materially possible," the authors declare. "Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical. What it will take instead is political choice, and the hard work of coalition-building behind it."
A sprawling report released Thursday argues that averting the "bleak techno-authoritarian futures now being sold to us" and laying the groundwork for a just, livable future requires restructuring the world's economic order to widely redistribute wealth that has been hoarded at the very top for decades.
The report, compiled by hundreds of researchers from around the world and published by the World Inequality Lab (WIL), is billed as the first comprehensive attempt to lay out a plan to "reconcile planetary habitability and high well-being for all." Achieving that aim will be impossible, the authors argue, "without a drastic reduction in inequality of income, wealth, and power."
"The current international order is plutocratic," said French economist Thomas Piketty, a renowned expert on inequality and co-director of WIL. "It is essential to move away from this plutocratic system to a new democratic order."
The report outlines a number of proposals that would redress staggering levels of wealth and income inequality. Currently, the top 10% of the global population brings in more income than the remaining 90% combined. Wealth inequality is even more extreme, with the top 10% controlling 75% of global wealth, compared to 2% controlled by the poorest half of humanity.
Specifically, the authors call for a new, progressive global income tax that would peak at 90% for those who earn 5,000 times the average adult disposable income. They also propose taxing the wealth of millionaires and billionaires at a rate up to 20%.
Revenue from the new taxes would flow into a Global Justice Fund, which would distribute dividends to countries to help boost spending on climate, education, and healthcare. The fund would also invest in a World Sovereign Fund, whose returns on "sustainable assets" would be used to finance country dividends.
"The result is not a transfer from many to few but a gain for almost everyone," Piketty and other report contributors wrote in an op-ed for The Guardian. "Close to 90% of the world’s population would double their income between 2026 and 2100, and once leisure and a habitable planet are counted, more than 99% come out ahead."
"Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical."
Redressing inequality would not be sufficient to secure a livable future, the report authors emphasize, given that continued fossil fuel use and expansion are pushing the world in the direction of climate catastrophe. What's required to prevent planetary disaster is a "fundamental transformation of energy systems," the report argues.
"This means electrifying energy demand wherever feasible (such as transitioning vehicle fleets) and switching to low-carbon fuels (for example, in steel and cement production)," the report states. "Crucially, electricity generation itself must be decarbonized, moving away from fossil fuels toward renewables like hydropower, solar, and wind."
The report also envisions a move away from overconsumption toward what the authors call a future of "sufficiency," which would entail shorter work hours for the global labor force, changes to land use, and other reforms.
Such ambitious goals will not become reality, the report stresses, without "a powerful citizen movement and a dense network of broad-based organizations (including labor unions, political parties, civic platforms, and other collective initiatives) which are sufficiently well-organized and effective at promoting broad institutional and policy change."
"A habitable, equal, and prosperous 21st Century is materially possible," the authors declare. "Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical. What it will take instead is political choice, and the hard work of coalition-building behind it."