As revealed this week by Oxfam, the 85 wealthiest people on the planet, have a combined wealth equal to that of the combined poorest half of the world's population. It's a shocking fact that needs to be repeated: 85 people have equal combined wealth to 3.5 billion people. Similarly mind-boggling is the fact that the richest 1% have 65 times the wealth of the poorest half of the world.
In countries right across the world, the poorest are paying for this wealth. In our country we are no different, although I do acknowledge that poverty in the UK rarely means as difficult an existence as it does in some parts of the world.
I can sort of see the logic behind wringing as much from the many as possible rather than pursuing large companies and individuals who are avoiding tax, or demanding better pay and working conditions in developing countries. For one thing, you can take a much smaller sum from each of a million people, for example, than from one very rich company who owes it to you. Also, they'll have to pay up because they won't be able to squirrel it into offshore havens or erase profits via pretend debt from subsidiaries.
So many countries prefer this method of balancing the books: either taking more from the regular hard-working people, or giving less to those who need a little help and letting the huge corporations and filthy-rich individuals who are avoiding tax off the hook.
Richard Murphy, Europe-wide renowned economist and tax specialist, has been involved in big discussions about one area, country-by-country reporting, which would shine a light on who is avoiding tax and how. Here is a recent blog where he explains this in a little more detail. Sadly, despite the G8 and the G20 agreeing that this is a necessary move, nothing appears to be happening.
Eventually, something will have to happen. It has to. Because at the current rate the gap between richest and poorest is growing, it won't be long before the poorest have nothing left to pay.
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