Billionaires’ wealth surged $6.5tn over past decade, Oxfam reports

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"Oxfam Report Highlights $6.5 Trillion Increase in Billionaires' Wealth Over Past Decade"

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According to a recent report by Oxfam, the wealth of the world’s 3,000 billionaires has increased by $6.5 trillion over the past decade, which represents approximately 14.6% of global economic output. This remarkable growth in wealth highlights a concerning trend, as the richest 1% of the global population has accrued at least $33.9 trillion in real terms—an amount deemed sufficient to eradicate annual global poverty 22 times over. The report underscores the growing calls from various governments to implement a wealth tax targeting the international elite, particularly as discussions around economic equality gain momentum. In the UK, the number of billionaires has surged from 15 in 1990 to 165 in 2024, with their average wealth increasing by over 1,000%. Oxfam noted that these billionaires contribute an effective tax rate of only about 0.3% of their wealth, significantly lower than the contributions made by average workers, prompting urgent calls for reform in the taxation system.

Oxfam's senior policy adviser, Rachel Noble, emphasized the need for the UK government to recommit to effective strategies for combating poverty through equitable taxation and public investment. The organization advocates for fair taxation of the substantial wealth held by the ultra-rich, highlighting the growing disparity between private wealth and government net wealth, which has expanded eight times faster from 1995 to 2023. Last year, a coalition of countries including Spain, Brazil, Germany, and South Africa proposed a minimum 2% tax on the super-rich at the G20 summit to address inequality and bolster public funds. While the potential impact of such a tax remains debated, a study by economist Gabriel Zucman suggests it could generate up to $250 billion in additional revenue. The ministers from these countries have also stressed the importance of countering tax evasion through tax havens, advocating for a global approach to ensure that the wealthiest individuals contribute their fair share to society. Oxfam's survey indicates that a significant majority of people support closing tax loopholes to fund public services, reflecting a growing demand for wealth redistribution in the face of increasing economic inequality.

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The wealth of the world’s 3,000 billionaires has surged by $6.5tn (£4.8tn) in real terms over the past decade, according toOxfam, equivalent to 14.6% of global output.

In total the richest 1% of the global population has gained at least $33.9tn in real terms, which the charity said was “enough to end annual global poverty 22 times over”.

The figures come as various governments face growingcalls to introduce a wealth taxon the international elite.

In the UK, the number of billionaires has grown sharply, from 15 in 1990 to 165 in 2024, according to separate figures fromthe Equality Trust, which found their average wealth rose by more than 1,000% over the same period. Billionaires pay “effective tax rates close to 0.3% of their wealth, well below what average workers contribute”, Oxfam said.

The charity called on the UK to work with other governments to oppose “extreme inequality”, with private wealth growing eight times faster than the net wealth of governments between 1995 and 2023.

Rachel Noble, a senior policy adviser at Oxfam, said: “This government is in danger of careering way off course on international development if it does not recommit to proven approaches to tackle poverty through public investment and fair taxation.

“The government must fairly tax the trillions of pounds that are locked away in the bank accounts of the super-rich and prioritise the fight against inequality, gendered oppression and the climate crisis.”

Last year Spain, Brazil, Germany and South Africa signed a motion at the G20 fora minimum 2% taxon the super-rich to reduce inequality and raise public funds. Forecasts on its potential impact vary, buta study by the leading French economist Gabriel Zucmanfound that it could net up to $250bn in extra revenue.

The four countries have called on other governments to support the campaign, saying that a levy on the ultra-wealthy would complement negotiations on the taxation of the digital economy and ongoing efforts to bring in aglobal minimum corporate tax of 15%for multinational businesses.

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Ministers from Spain, Brazil, Germany and South Africa have argued that there would need to be steps to counter the use of tax havens, and a levy would be designed to prevent evasion by billionaires who choose to live in, for example, Monaco or Jersey, but make their money in bigger economies such as the UK or France.

Spain’s economy minister, Carlos Cuerpo, said during a visit to London last November that the world’s richest countriesneeded to “be brave”, saying recent elections had shown citizens were demanding “redistribution of wealth”.

Asurveyby Oxfam found that 86% of people supported paying for public services by “closing loopholes” that allow wealthy individuals and large corporations to use tax havens.

The government was approached for comment.

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Source: The Guardian