World’s richest 1% increased fortunes by $40tn over past decade

Over the past decade, the world’s richest one percent have increased their fortunes by a staggering $42 trillion, according to a report by Oxfam released on Thursday. The non-governmental organization (NGO) highlighted the growing disparity in wealth, attributing it to historic lows in taxes on the rich, which has led to what they describe as “obscene levels” of inequality, leaving the rest of the world to struggle with limited resources.

This pressing issue is set to take center stage at the upcoming G20 summit in Brazil. The South American nation has prioritized international cooperation on taxing the super-rich during its presidency of the G20, a coalition of countries representing 80% of the world’s GDP.

At this week’s summit in Rio de Janeiro, the G20 finance ministers are anticipated to discuss measures to increase levies on the ultra-wealthy and curtail tax evasion among billionaires. The initiative seeks to develop comprehensive methods to ensure that billionaires and other high-income earners contribute a fairer share of taxes.

The proposal is expected to incite vigorous debate during the summit on Thursday and Friday, with countries such as France, Spain, South Africa, Colombia, and the African Union supporting the initiative, while the United States remains firmly opposed.

Oxfam has described the summit as a “real litmus test for G20 governments,” urging them to adopt an annual net wealth tax of at least eight percent on the “extreme wealth” of the super-rich.

“Momentum to increase taxes on the super-rich is undeniable,” said Max Lawson, head of inequality policy at Oxfam International. “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?”

According to Oxfam, the $42 trillion amassed by the wealthiest one percent is nearly 36 times more than the wealth accumulated by the poorer half of the world’s population. Despite this enormous disparity, billionaires globally have been paying a tax rate equivalent to less than 0.5% of their wealth, the NGO noted.

Nearly four out of five of the world’s billionaires reside in a G20 nation, underscoring the significance of this summit’s discussions. As the world watches, the outcomes of this week’s talks could signal a pivotal shift in global economic policies and the fight against inequality.