Wealth Tax Could Solve Poverty

October 30, 2014 International Tax Cooperation

BOSTON – Taxes could be the key to addressing the global issue of income inequality, while, simultaneously, raising enough funds to help provide education and healthcare to children living in poverty.

In a statement issued on October 29th the international aid body Oxfam International claimed that since 2009 the number of billionaires in the world has doubled, and that implementing a small tax on the wealthy will raise enough tax revenues to help fund the eradication of poverty.

According to the experts at Oxfam, enacting a worldwide wealth tax of 1.5 percent on the total wealth held by a billionaire would raise global tax collections by approximately USD 74 billion per year.

The extra tax revenues collected would be enough to provide education for each of the 57 million children around the world who currently do not have access to a school, and, in addition, to provide basic health care in the poorest countries in the world.

The experts of Oxfam also suggested that in order to tackle the issue of income inequality, governments around the world should do more to eliminate the occurrence of tax evasion, while simultaneously creating greater opportunities for education and employment for low-income individuals.

In the newly published report it was noted that implementing extra taxes on the wealth held by the richest people in the world is not “…about being envious of fast cars and super yachts – it’s about the fact that the richest literally live longer and healthier lives than the poorest.”

Photo By: Shahnawaz Sid