Oxfam: Progressive taxation of the great wealth would bring an extra 286.5 billion euros to the EU's budget

The European Commission and the European Parliament should approve the progressive taxation of large fortunes, according to a study by the global non-governmental organization Oxfam International, which campaigns for the reduction of social inequalities and poverty.

The implementation of a progressive tax between 2% and 5% for multi-millionaires and billionaires in the European Union would lead to the annual collection of 286.5 billion euros, a budget that is almost double the annual budget of the EU bloc, which has been in recent years between 160 and 182 billion euros.

So that Oxfam International proposes a tax of 2% for net wealth over 4.6 million euros, 3% for net wealth over 45.7 million euros and 5% for wealth over 913 million euros could generate 286 .5 billion euros every year (785 million per day or 32.7 million per hour). The calculation does not include Croatia, Cyprus, Estonia, Latvia, Lithuania, Malta and Slovakia, the quoted source said.

According to those from Oxfam International, the amount collected as a progressive tax on large fortunes represents 40% of the EU post-pandemic recovery fund (which amounts to 723.8 billion euros), it amounts to three times the value of the aid budget in the last 7 years of the European Union (euro78.6 billion) and is more than half of the largest annual global cost estimate for climate crisis adaptation and mitigation in low- and middle-income countries (euro543 billion).

Oxfam also shows that the amount of 286.5 billion euros collected from the implementation of this annual additional tax on the great European wealth is greater than the annual budget of Finland (277.62 billion euros).

Arguing its proposal, the NGO claims that the wealth of EU billionaires increased by 33% from 2020 to November 2023 (from 1.44 trillion euros, adjusted for inflation, to 1.92 trillion euros - not counting billionaires from Croatia, Latvia, Lithuania, Luxembourg, Malta and Slovenia were caught), while 99% of the EU population (around 443 million people) owned 5.6% less wealth in real terms in 2022, compared to 2019, falling from euro57 billion to euro54 billion.

Oxfam also states that 1% of Europe's population, the percentage made up of euro billionaires, owns 47% of the continent's total financial wealth. The quoted source says that wealth/financial assets include bank deposits, shares, bonds and loans, and the figure refers to Europe as defined by the UN, which also includes countries such as Russia, Norway and the United Kingdom.