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For Immediate Release
April, 23 2020, 12:00am EDT
Contact:
Bob Keener, 617-610-6766, bobk@ips-dc.org
Olivia Alperstein, 202-704-9011, olivia@ips-dc.org
Chuck Collins, 617-308-4433, chuck@ips-dc.org  Â
New Report Finds Billionaire Wealth Still Surging Compared to Median Wealth
Even During the Pandemic Many Billionaires Are Snatching Windfalls.
WASHINGTON
In early April this year, as 22 million Americans lost their jobs and the U.S. employment rate approached 15 percent, the combined wealth of America's billionaires had increased from March 18 by $282 billion -- nearly a 10 percent increase. That's among the findings in a new report published today by the Institute for Policy Studies, "Billionaire Bonanza 2020: Wealth Windfalls, Tumbling Taxes, and Pandemic Profiteers." Download the report HERE.
"This is the tale of two pandemics, with very unequal sacrifice," said Chuck Collins, a co-author of the report. "While some are seeing their wealth increase by billions, others are suffering. We are not all in the same boat as long as billionaires are cruising in their yachts, and most Americans are simply trying to keep their heads above water."
The report studied both the recent impact of the pandemic as well as long-term trends in wealth accumulation by the U.S. billionaire class. It found that between 1990 and 2020, U.S. billionaire wealth soared 1,130 percent in 2020 dollars, an increase more than 200 times greater than the 5.37 percent growth of U.S. median wealth over this same period.
While much pandemic media attention has focused on the loss of wealth in the stock market decline and business disruption, the IPS report found that many billionaires are well-insulated from such losses. In fact, after a brief decline, the combined wealth of U.S. billionaires has surpassed their 2019 levels. Between January 1, 2020 and April 10, 2020, 34 of the nation's wealthiest 170 billionaires have seen their wealth increase by tens of millions of dollars.
Eight of these billionaires - the "pandemic profiteers" - have seen their net worth surge by over $1 billion each. They are: Jeff Bezos (Amazon), MacKenzie Bezos (Amazon), Eric Yuan (Zoom), Steve Ballmer (Microsoft), John Albert Sobrato (Silicon Valley real estate), Elon Musk (Tesla and SpaceX), Joshua Harris (Apollo Global Management), and Rocco Commisso (Mediacom).
Jeff Bezos's wealth surge is unprecedented in modern financial history. As of April 15, his fortune had increased by an estimated $25 billion since January 1, 2020. This is larger than the Gross Domestic Product of Honduras, which was $23.9 billion in 2018.
"We shouldn't be distracted and bamboozled by billionaire charity," said Collins. "As a class, they have used their considerable political clout over the decades to reduce their tax obligations, shifting expenses onto the rest of us." According to the IPS study, between 1980 and 2018, the tax obligations of America's billionaires, measured as a percentage of their wealth, decreased 79 percent.
Other findings in the report:
- The billionaire share of America's increased wealth has risen throughout the past four decades. Between 2006 and 2018, nearly 7 percent of the real increase in America's total wealth went to the country's 400 wealthiest households.
- Billionaire wealth rebounded quickly after the 2008 financial crisis, taking less than 30 months to attain its pre-meltdown levels. Between 2010 and 2020, U.S. billionaire wealth increased 80.6 percent in 2020 dollars, more than five times the median wealth increase of 15.1 percent for U.S. households over the 2010 to 2016 years, based on most recent available data.
The report also makes recommendations to prevent the pandemic from further concentrating billionaire wealth and power. These include:
- Establish a Pandemic Profiteering Oversight Committee that goes beyond oversight of stimulus funds.
- Discourage wealth hiding through passage of the Corporate Transparency Act.
- Levy an emergency 10 percent Millionaire Income Surtax.
- Unleash a Charity Stimulus to mandate payouts of donor-advised funds and emergency 10 percent payout for private foundations for three years.
- Make the federal estate tax more progressive and institute a wealth tax.
- Shut down the global hidden wealth system.
The report defines wealth as net worth, or assets (what you own) minus liabilities (what you owe). Distinct from income, which represents the flow of wages, investment income, and entitlement payments, wealth, in contrast, provides a long-term indicator of financial well-being.
According to the report, the accelerating concentration of our nation's wealth has enabled a small sliver of the population to enjoy a wildly disproportionate say over how our society operates.
If expanding billionaire wealth lifted all people, the size of billionaire fortunes might be something to celebrate. But the report shows that the number of households with zero or negative wealth is increasing. A high percentage of U.S. households are living on the edge, paycheck to paycheck. The current pandemic has exposed our central economic and social reality: Extreme wealth inequality is America's pre-existing condition.
The report says that this pre-existing condition has left our political system too feeble to function democratically. Many billionaires are investing their fortunes in ways that expand their own wealth and power. The politicians they back are cutting their taxes and blocking public investments like early childhood education and low-cost college that expand opportunity for everyone else. At its core, the combination of consolidating wealth and power hurts our economy and our democracy.
The report, "Billionaire Bonanza 2020: Wealth Windfalls, Tumbling Taxes, and Pandemic Profiteers" may be found here: https://ips-dc.org/billionaire-bonanza-2020/.
The Institute for Policy Studies is a multi-issue research center that has conducted path-breaking research on inequality for more than 20 years. The IPS Program on Inequality and the Inequality.org website provides research, advocacy and policy development on issues related to economic inequality.
Institute for Policy Studies turns Ideas into Action for Peace, Justice and the Environment. We strengthen social movements with independent research, visionary thinking, and links to the grassroots, scholars and elected officials. I.F. Stone once called IPS "the think tank for the rest of us." Since 1963, we have empowered people to build healthy and democratic societies in communities, the US, and the world. Click here to learn more, or read the latest below.
LATEST NEWS
'Simply Unacceptable': Nearly 200 Environmental Defenders Killed in 2023
"Activists and their communities are essential in efforts to prevent and remedy harms caused by climate damaging industries," one campaigner said. "We cannot afford to, nor should we tolerate, losing any more lives."
Sep 10, 2024
Almost 200 people were killed in 2023 for attempting to protect their lands and communities from ecological devastation, Global Witness revealed Tuesday.
This raises the total number of environmental defenders killed between 2012—when Global Witness began publishing its annual reports—and 2023 to 2,106.
"As the climate crisis accelerates, those who use their voice to courageously defend our planet are met with violence, intimidation, and murder," Laura Furones, the report's lead author and senior adviser to the Land and Environmental Defenders Campaign at Global Witness, said in a statement. "Our data shows that the number of killings remains alarmingly high, a situation that is simply unacceptable."
At least 196 people were murdered in 2023, 79 of them in Colombia, which was both the deadliest country for defenders last year and the deadliest overall. In 2023, more defenders were killed in Colombia than have ever been killed in one country in a given year since Global Witness began its calculations.
While the government of left-wing President Gustavo Petro has promised to protect activists, organizers on the ground say the situation has only gotten worse for defenders in the past year. Colombia will host the 16th Conference of Parties to the Convention on Biological Diversity in October, and has promised to highlight the role of defenders in protecting nature. This presents a "historic opportunity" to stand up for the rights of environmental activists, Global Witness said.
Overall, Latin America is the deadliest region for defenders, making up 85% of killings in 2023. It was home to the four deadliest countries for defenders—Colombia, Brazil, Honduras, and Mexico—which together accounted for 70% of all killings. Honduras also saw the highest number of killings per capita, both in 2023 and over the past 11 years.
"It is the job of leaders to listen and make sure that defenders can speak out without risk."
The fifth deadliest country for defenders in 2023 was the Philippines, which saw 17 people killed. Overall, nearly 500 people have been murdered in Asia since 2012, with the Philippines remaining the deadliest country in the region during that time. Global Witness recorded four deaths in Africa in 2023, and 116 since 2012, but noted that this is likely a "gross underestimate" as killings on the continent are more difficult to document due to a lack of information.
Global Witness cannot always link a particular industry to the murders of the land defenders who oppose environmental harm. In Colombia, for example, it estimates that half of people killed in 2023 were killed by organized criminal elements. However, for the deaths it was able to connect, most people died after opposing mining operations at 25. This was followed by logging (5), fishing (5), agribusiness (4), roads and infrastructure (4), and hydropower (2).
The threat of even more mining-related violence looms as nations scramble for the critical minerals necessary for the transition away from fossil fuels and toward renewable forms of energy. This dovetails with another component of Global Witness' findings: the disproportionate violence borne by Indigenous communities for defending their homes. Of the defenders killed in 2023, nearly half were Indigenous peoples or Afrodescendants, and almost half of the minerals needed for the energy transition are located on or near Indigenous or peasant land.
Jenifer Lasimbang, an Indigenous Orang Asal woman from Malaysia and executive director of Indigenous Peoples of Asia Solidarity Fund, explained the situation her community faces:
In Malaysia, as in many other countries, we Indigenous Peoples have been subject to wave after wave of destruction. First came the logging and oil palm companies. As a result, nearly 80% of the land surface in Malaysian Borneo has been cleared or severely damaged.
Now, as the world moves away from a fossil-fuel based economy, we're seeing a rush for critical minerals, essential to succeed in the transition to a green economy.
With Malaysia the regional leader in aluminium, iron and manganese production, extracting rare minerals isn't new to us. But our experience so far has been that this comes at a huge environmental cost.
The Malaysian government is issuing an increasing number of prospecting and mining licenses. We know what this new "green rush" means for us. We know it's going to get worse while demand for resources remains high.
Lasimbang said that her community did not oppose development itself, but an "unsustainable and unequal global system" predicated on ever-increasing consumption, and that world leaders should learn from Indigenous communities like hers how to sustain a society without destroying the environment.
"There is only really one thing left to say: Trust us. Let us lead. We will take you with us," Lasimbang said.
While global awareness of the climate crisis and commitments to address it should have translated into greater protections for those on the frontlines of defending biodiversity, that has not been the case. Since the Paris agreement was signed in 2015, at least 1,500 defenders have been murdered, Global Witness said.
Even in wealthier countries like the U.K., E.U., and U.S. where killings are less frequent, governments have increasingly repressed environmental activists by criminalizing protest. In 2023, Global Witness observed that the "global surge in anti-protest legislation persisted."
For example, in 2023 the U.K. expanded its Public Order Act to allow police to prosecute certain protests that disrupted national infrastructure or caused "more than a minor" disturbance. In November of that year, police arrested at least 630 people for marching slowly on a public road to protest new fossil fuel projects.
In the U.S., more than 20 states have passed "critical infrastructure" laws that target protests against fossil fuel projects like pipelines. E.U. countries have passed similar laws as well.
Even in the developed world, the criminalization of protest can turn deadly: In January 2023, police in Georgia shot and killed 26-year-old defender Manuel Esteban Paez Terán, or Tortuguita, as they were camping out in a local forest to prevent it from being bulldozed to facilitate the construction of a "Cop City" training facility.
To protect defenders worldwide, Global Witness called on governments and businesses to document attacks and hold perpetrators to account.
"Governments cannot stand idly by; they must take decisive action to protect defenders and to address the underlying drivers of violence against them," Furones said. "Activists and their communities are essential in efforts to prevent and remedy harms caused by climate damaging industries. We cannot afford to, nor should we tolerate, losing any more lives."
Nonhle Mbuthuma of South Africa, who won the Goldman Environmental Prize in 2024, wrote in the report's forward that both defenders and governments had a role to play in creating a more just and sustainable world as it teeters on the brink of climate and ecological breakdown.
"Now it is my role, as a defender, to push elite power to take radical action that swings us away from fossil fuels and toward systems that benefit the whole of society," Mbuthuma wrote. "It is the job of leaders to listen and make sure that defenders can speak out without risk. This is the responsibility of all wealthy and resource-rich countries across the planet."
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‘Long-Overdue Justice’: EU Court Rules Ireland Let Apple Avoid $14.4 Billion in Taxes
"This ruling exposes E.U. tax havens' love affair with multinationals."
Sep 10, 2024
The European Union's highest court on Tuesday ruled that Apple must pay €13 billion in back taxes to Ireland, determining that the country gave the company illegal tax benefits in the past, in what campaigners called a victory for tax justice.
The E.U. Court of Justice ruling brought to a close a landmark case that began in 2016 when the European Commission ordered Apple to pay the €13 billion ($14.4 billion) based on an unfair tax arrangement the company had with Ireland from 1991 until 2014. A lower court overturned the commission's order in 2020, but Tuesday's ruling, which is final, restores it.
Observers viewed the case as among the most important brought by E.U. Competition Commissioner Margrethe Vestager, an antitrust official who's been in office since 2014.
"It's important to show European taxpayers that once in a while, tax justice can be done," Vestager, who leaves office in two weeks, said following Tuesday's ruling.
Chiara Putaturo, a tax policy adviser at Oxfam EU, said in a statement that "this ruling exposes E.U. tax havens' love affair with multinationals. It delivers long-overdue justice after over a decade of Ireland standing by and allowing Apple to dodge taxes."
Today is a huge win for European citizens and tax justice.
👉In its final judgment, @EUCourtPress confirms @EU_Commission 2016 decision: Ireland granted illegal aid to @Apple.
Ireland now has to release up to 13 billion euros of unpaid taxes.
— Margrethe Vestager (@vestager) September 10, 2024
The European Commission argued that the selective tax benefits that Ireland had offered to two Apple subsidiaries amounted to illegal state aid that hindered competition. The company's tax burden in Ireland, where its European operations have been based since 1980, was as low as 0.005% of its profits in 2014.
In November of last year, Giovanni Pitruzzella, the advocate general of the E.U. Court of Justice, issued an opinion in favor of the commission's position and against the lower court ruling, in a setback for the tech giant. The high court, which is based in Luxembourg, generally agrees with its advocate general following such recommendations, as it ultimately did on Tuesday.
The €13 billion, plus interest, has been held in an escrow account since 2018 and will be released to Ireland, even though the country fought against the commission's order. Ireland said it would respect the court ruling.
Ireland is often characterized a tax haven within the E.U. and hosts the European headquarters for many multinational firms, with critics charging that its tax system drives up inequality.
Tax justice campaigners said Tuesday's ruling should just be a start and that more fundamental reforms are needed at the international and E.U. level.
"Our tax problem is more than just one rotten apple," Tove Maria Ryding, a policy manager at the European Network on Debt and Development, said in a statement.
"The international system for taxing multinational corporations continues to be deeply complex, unpredictable and unfair," she added, arguing that a company's economic activity across many countries, including in the Global South, shouldn't mean tax revenues only for one country such as Ireland.
Ryding praised the United Nations' efforts to establish a global tax convention, calling the proposal a "beacon of hope for a fairer future."
Putaturo of Oxfam likewise called for a fairer tax system in Europe.
"While this ruling will force the tech giant to pay its debt, the root of the issue is far from solved," she said. "E.U. tax havens can still make sweetheart tax deals with big multinationals. The duty to stop this rests on the shoulders of E.U. policymakers. Yet, they have turned a blind eye to tax havens within their borders and the harmful race to the bottom that countries like Ireland are instigating."
Oxfam EU also called for the closing of tax loopholes and the establishment of a wealth tax.
The Apple case was not the only victory for Vestager, the antitrust chief, on Tuesday: The E.U. Court of Justice also ruled that Google had illegally used its search engine dominance to favor its own shopping service, fining the company €2.4 billion ($2.65 billion).
Bloomberg on Tuesday called it a "double boost to the European Union’s crackdown on Big Tech," and said that Vestager's past work had "paved the way" for the U.S. and the U.K. to take action against Google.
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Pacific Islands Push ICC to Recognize Ecocide as International Crime
"This is a moment of generational change, one that is needed to safeguard our environment and signal to coming generations that the world is truly serious about doing so," said one legal expert on ecocide.
Sep 10, 2024
Campaigners against ecocide, the destruction of nature, applauded what one leader called a "key moment" in the fight to protect the natural world and communities that are most vulnerable to climate damage on Monday as three Pacific island nations proposed that the International Criminal Court formally recognize the crime.
Vanuatu, which first made a similar proposal in 2019, was joined by Samoa and Fiji in submitting the proposal to the ICC, which was established in 2002 to prosecute cases regarding genocide and crimes against humanity.
"Vanuatu considers it imperative that the international community takes this conversation seriously, and we warmly invite all member states to engage," said Ralph Regenvanu, special envoy for climate change and environment for Vanuatu, in a statement. "Legal recognition of severe and widespread environmental harm holds significant potential to ensure justice and, crucially, to deter further destruction."
The recognition of environmental and ecosystem destruction as a crime could allow the court to prosecute individuals accused of ecocide, such executives of pollution-causing companies whose activities are linked to planetary heating and the sea-level rise and intense storms small island nations increasingly face and officials of governments that continue to emit high levels of greenhouse gases.
Philippe Sands, a law professor at University College London and co-chair of an expert panel on the legal definition of ecocide, said that as drafted, the Rome Statute, which established the ICC, "cannot adequately address environmental harms" and must be changed to reflect "a growing recognition that severe environmental destruction deserves the same legal accountability as other grave international crimes that focus on the human."
"People clearly understand that the most severe forms of environmental destruction harm all of us, and that there is real deterrent potential in creating personal criminal liability for top decision-makers."
“There is a manifest gap in the statute of the ICC, and ecocide is now firmly on the agenda, a vital and necessary moment for an effective international law," said Sands. "This is a moment of generational change, one that is needed to safeguard our environment and signal to coming generations that the world is truly serious about doing so."
Sands told The Guardian that he is "100% certain" that ecocide will ultimately be recognized as an international crime, but with the matter tabled for a full discussion by the ICC at a later date, a long deliberation process is expected.
The Pacific nations introduced the proposal at the ICC days after the Global Commons Survey, conducted by Ipsos UK, found that 72% of people in G20 countries believe ecocide should be recognized as a crime.
Jojo Mehta, co-founder and CEO of Stop Ecocide International, said last week that "widespread civil society demand" has driven the European Union to recognize "conduct comparable to ecocide" as a "qualified" offense, and Belgium to adopt ecocide as a crime punishable by up to 20 years in prison and fines as high as $1.8 million.
"We're seeing significant policy shifts in favor of ecocide legislation at the domestic, regional, and international levels," said Mehta. "People clearly understand that the most severe forms of environmental destruction harm all of us, and that there is real deterrent potential in creating personal criminal liability for top decision-makers. Damage prevention is always the best policy, which is precisely what ecocide law is about."
Some of the world's biggest polluters, including the United States, China, and Russia, are not member states of the ICC, and could challenge the court's jurisdiction if accused of ecocide—but Mehta said Monday that "by establishing legal consequences, we create a guardrail that compels decision-makers to prioritize safety for people and planet, fundamentally altering how they approach their obligations."
"We also create a route to justice for the worst harms," she said, "whether they occur in times of conflict or in times of peace."
Regenvanu said Vanuatu has prioritized the recognition of ecocide as a crime after suffering significant climate damage for years, with the government already having relocated six towns due to irreversible sea level rise.
"Environmental and climate loss and damage in Vanuatu is devastating our island economy, submerging our territory, and threatening livelihoods. This tragedy is not unique to Vanuatu but is shared by many small island nations that, despite bearing the least responsibility for the crisis, suffer most from its impacts," said Regenvanu. "We urge ICC member states to take note of the very substantial civil society support for this initiative around the world as it moves forward in this crucial discussion."
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