‘Spain’s wealth tax has been successful in funding public services adequately, which is what it’s about and nothing to do with being anti-rich.’
The right-wing blog Guido Fawkes launched a tirade this week against calls for governments worldwide to adopt Spain’s wealth tax on the super-rich.
In late 2022, Spain’s socialist Prime Minister Pedro Sanchez introduced a temporary “solidarity” wealth tax as part of measures to ease the cost of living for ordinary Spaniards amid soaring inflation. The tax targets individuals with a net worth exceeding €3 million and is expected to impact the wealthiest 0.5 percent of households in Spain.
By September 2023, Spain’s Budget Ministry reported that the tax had generated €32 million that year alone. Overall, Spain collected more than €1.8 billion in 2023 from taxes on large fortunes, according to a Reuters report.
The Tax Justice Network, a fair tax advocacy group, has claimed that applying a similar tax on the top 0.5 percent of wealthiest households globally, at a rate between 1.7 percent and 3.5 percent, could generate approximately $2.1 trillion. Their report suggests that such a tax could raise as much as $31 billion annually in the UK alone, with the funds being used to help finance the climate transition.
Alison Schultz, a research fellow at the Tax Justice Network, highlighted the urgency of imposing wealth taxes, stating: “A minority of rich countries still seem to be holding back from support for a robust framework convention on tax – despite this being the best opportunity that we’ve ever had, and one that their own people demand they act on with urgency. This needs to change now – the climate can’t wait, and nor can the people of the world.”
The report gained attention in mainstream media outlets, including the Mirror, BBC, and the Guardian, which seemed to irritate the anti-EU, right-wing political website Guido Fawkes. In an article entitled: “Anti-wealth fanatics propose UK copies failed Spanish wealth tax,” the blogger wrote:
“Pro-tax fanatics the Tax Justice Network got an inordinate amount of coverage today for their report claiming that a “global wealth tax” which copies that of Spain would raise £1.5 trillion. Spain’s applies to those who own assets over €3 million and can go as high as 3.5%.”
The rant continued, sarcastically noting that the campaign group’s report “helpfully ignores that in 2022 Spain had net external migration of 727,000 — the highest in 10 years,” and “dismisses the obvious fact that people will leave if you implement a wealth tax as a “myth.” It added: “wealthy Norwegians left the country after it imposed a wealth tax.”
But the reality is that only about 0.01 percent of the richest households in Norway, Sweden, and Denmark relocated after wealth tax reforms were introduced. In the UK, a study found that changes to non-dom rules in 2017 led to a migration rate as low as 0.02 percent.
France, Germany, Spain and South Africa have all indicated support for a fairer tax system to deliver £250bn a year extra to fight poverty and the climate crisis.
Chancellor Rachel Reeves has previously ruled out the introduction of a new wealth tax. However, Labour has confirmed it is abolishing non-dom status to raise more than £5bn. It is also believed that Reeves is considering increasing taxes on capital gains, inheritances, and pensions in the autumn budget.
As for Guido Fawkes’ ‘Crank tax campaigners get soft-touch coverage’ rant, even readers were not entirely convinced.
“Anti-Rich Fanatics? Wow – really? People like Guido will do and say anything to try to persuade their followers that the rich aren’t at the heart of all our problems. I really wish people would start to listen to some different voices around this stuff – like this one. There will literally be nothing left if we continue to allow the rich to keep taking everything. Wise up everyone!” commented one reader.
“Spain’s wealth tax has been successful in funding public services adequately, which is what it’s about and nothing to do with being anti-rich. Switzerland, Norway, Denmark & France have a wealth tax, which largely targets the top 1% of wealthy people. So, quit the drama queen,” was another response.
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