Saudi Press

Saudi Arabia and the world
Thursday, Dec 04, 2025

A global tax on millionaires would benefit the wealthy as well as the poor

A global tax on millionaires would benefit the wealthy as well as the poor

An open letter was recently published that was signed by more than 100 millionaires and billionaires, pleading to their class brethren – particularly those participating in the World Economic Forum’s recent online Davos summit – to adopt a fairer international tax system.
“To put it simply, restoring trust requires taxing the rich. The world – every country in it – must demand the rich pay their fair share,” the letter states. “Tax us, the rich, and tax us now.” In its conclusion, the letter adds a pretty astute assessment of the situation we face around the world. This is not a group of self-hating rich folk but rational-minded people looking to protect their own self-interest, as convoluted as that might sound.

“History paints a pretty bleak picture of what the endgame of extremely unequal societies looks like. For all our well-being – rich and poor alike – it’s time to confront inequality and choose to tax the rich. Show the people of the world that you deserve their trust,” the letter continues. “If you don’t, then all the private talks won’t change what’s coming – it’s taxes or pitchforks. Let’s listen to history and choose wisely.”

What the signatories are talking about is the fact that global capitalism has ratcheted up inequality, its primary contradiction, to a point that it is unlikely to be able to sustain itself much longer. This was already a huge problem prior to 1Covid1-19, but it has only got worse.

As Oxfam found in a report published earlier this month, the 10 richest men in the world have doubled their cumulative fortune from $700 billion to $1.5 trillion since the start of the pandemic. A new billionaire was created once every 26 hours from March 2020 to November 2021, it found.

But, on the flip side, according to Oxfam, more than 160 million people are so far estimated to have slipped beneath the poverty line. This egregious inequality, the report says, is responsible for more than 21,000 deaths per day.

Separately, the World Bank said in a report in September last year that the incomes of the bottom 40% globally fell by 6.7% compared to pre-pandemic projections. Inflation is surely eating away at wages even more at this point.

A major driver of this inequality has been the tax system. For example, in the United States, former President Donald Trump’s signature tax cuts to the wealthy and corporations created fertile ground for the pandemic hand-up. The Trump tax cuts lowered the corporate tax rate by 40% and, in its first year, doubled the number of companies paying zero taxes from 30 to 60. This included major firms such as Amazon.com Inc., Netflix Inc., Chevron Corp., Eli Lilly and Co., and Deere & Co., some of which have faced heavy criticism over working conditions.

The Trump estate tax cut – essentially a giveaway to the ultra-rich – triggered a 50% nosedive in IRS revenue from wealthy individuals, according to a Bloomberg report. This figure went from around $20 billion to just over $9 billion in 2020.

So, what can be done? Well, there’s already been talk about a global minimum tax. Late last year, the Organisation for Economic Co-operation and Development put forward a “two-pillar” solution, following an agreement by G20 countries in October 2021. This will establish a 15% minimum global tax by 2023 – however, analysis from Reuters found that there are glaring, billion-dollar loopholes such as “profit shifting” across countries – a strategy now widely used by major tech companies.

Fortunately, a detailed report by Oxfam, the Fighting Inequality Alliance, the Institute for Policy Studies, and the Patriotic Millionaires has found that a simple wealth tax on the global ultra-rich could raise over $2.5 trillion each year. This would have a graduated rate structure, with a 2% tax on wealth over $5 million, 3% on wealth over $50 million, and 5% on wealth over $1 billion.

The bottom line? This would be enough money to lift 2.3 billion people out of poverty, vaccinate everyone in the world, and ensure the likes of universal healthcare and a social safety net for everyone in low- and lower-middle-income countries, which covers about 3.6 billion people.

This seems a pretty easy fix to save capitalism from itself.

However, the discussion deserves further reflection, given that it wouldn’t be just poorer people who would benefit, but everyone – including the ultra-wealthy. First of all, it’s important to realize that ultra-wealth is not actually cash in hand, in many cases. The world’s richest man, Elon Musk, derives his fortune from stock holdings, namely Tesla, the company he acts as CEO for, and has admitted in court filings that he has debt against this stock.

In his own words, people like him are just in charge of huge “capital allocation” – and that is a responsibility, which no doubt induces massive stress, that no one person should have.

Second of all, there’s a reason why most billionaires live much of their lives in secrecy. They’re not the most popular individuals – and rightfully so, since their wealth often comes from exploitation. Maybe this is why people such as Musk and Jeff Bezos want to escape to another planet, Mark Zuckerberg is trying to create an alternative reality, Bill Gates spends a fortune in the media to make people like him, and Jack Dorsey is delving into ancient meditation practices.

Even your average, everyday millionaires – which actually works out to be quite a lot of older folks, at least in the US – have persistent stress and anxiety. The tension in society is omnipresent.

But, finally, the thing is that even if these guys weren’t in these roles, someone else would be. You can take that to the bank, since their stock-dependent wealth means they are bound by shareholders to juice profits by any means.

In the end, we are not talking about a moral failing of individuals, but a systemic issue that requires a systemic response, namely redistributive policies – otherwise, bring on those pitchforks.

Hats off to the signatories of that open letter who have the wherewithal to see the proverbial writing on the wall.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
×