Anti-Poverty Campaigners Cheer Spain-Brazil-South Africa Plan to Tax the Grotesquely Rich

A new plan backed by the governments of Spain, Brazil, and South Africa to tax the fortunes of the uber-rich drew hearty cheers from anti-poverty campaigners, environmental activists, and unions when it was announced on Tuesday.

As described in an announcement by the Spanish government, the initiative aims to create coordination between governments on the taxation of high-net-worth individuals to ensure they are not shuffling money abroad to avoid proper taxation.

"The proposal aims to incentivize and guide different countries to join the initiative and address policy, administrative, and data deficiencies, ensuring that high-net-worth individuals are taxed more efficiently in line with their wealth," the Spanish government explained. "To achieve this, it is necessary to foster international cooperation in multilateral forums to promote and facilitate the implementation of evidence-based reforms and ongoing experiences regarding the taxation of large fortunes in different countries."

The plan—crafted by the governments of Spain and Brazil and presented at the United Nations' Fourth International Conference on Financing for Development being held in the Spanish city of Seville—was quickly praised by an assortment of international nonprofit organizations as an essential tool for tackling global wealth inequality.

Kate Blagojevic, associate director for Europe campaigns for environmental the advocacy group 350.org, described it as "a bold move by Spain and Brazil" that she said could provide funding for clean energy investments around the world, including in countries that lack the resources to make such investments.

"We want more countries to join this coalition so that billionaires and multi-millionaires help to foot the bill for the climate damage they have caused and decrease the huge gap between the rich and the poorest," she said, while also calling for the United Kingdom, France, and Germany to sign on.

Susana Ruiz, the tax justice policy lead at the anti-poverty organization Oxfam, emphasized that international coordination on taxation of high-worth individuals was a serious proposal to address a crisis in global democracy, which she said was being undermined by the corrupting influence of vast sums of money being held by a tiny number of people.

"This extreme inequality is being driven by a financial system that puts the interests of a wealthy few above everyone else," she said. "This concentration of wealth is blocking progress towards the Sustainable Development Goals and keeping over three billion people living in poverty: over half of poor countries are spending more on debt repayments than on healthcare or education."

Fred Njehu, the global political lead for Greenpeace’s Fair Share campaign, deemed the tax plan essential at a time when nations are behind their renewable energy goals and when wealthy elites such as Amazon CEO Jeff Bezos can go all-out for a lavish three-day wedding in Venice.

"Financing is urgently needed for climate action and public services, not for polluting space travel and luxury weddings," he said. "This new coalition of governments working to tax the super-rich adds to the growing global momentum to make the world’s wealthiest pay their fair share. People are fed up with billionaires' greed eroding the environment and communities we depend on. It's time for world leaders to listen and act."

And Leo Hyde, the campaigns and media coordinator at the Public Services International union, praised the plan and said that was the result of years' worth of advocacy by unions and other organizations.

"The initiative aims to ensure a progressive and efficient global tax system with the aim of reducing social inequality," he said. "This builds directly on years of union-led tax justice campaigning that has already yielded significant victories, including the OECD global minimum corporate tax, Australia's public country-by-country reporting initiatives, and the ongoing UN tax treaty negotiations."