A report shows that billionaires could raise $250 billion annually if taxed around 2%.
There are around 2,500 billionaires worldwide, and their combined wealth is $13 trillion.
Imposing just a 2% tax on this fraction of the population can contribute to billions of people’s overall health and education.
Billionaires & Global Wealth
The report by the EU Tax Observatory suggested regulating the complex taxation process so that the rich are forced to pay their taxes.
Due to the frequent use of offshore shell companies, the ultra-rich pay zero income tax.
Nobel Prize-winning American economist Joseph Stiglitz said not taxing the rich can significantly undermine democracy and can encourage people not to pay taxes.
Billionaires Not Paying No Taxes
One reason for intense inequality in American society is the tax difference between the rich and the middle class.
Chye-Ching Huang, executive director of the Tax Law Center at NYU School of Law, says most Americans pay their taxes automatically in the form of hourly wages or salaries.
“High net worth people can choose whether and even when to pay taxes,” he says.