Wealth tax is a type of tax levied based on how much value a person has in their assets after deducting their liabilities. Assets can include property, bank accounts and investments. The purpose of the tax is to reduce economic inequalities by taxing those with the most money. How much you pay depends on the country you live in and how much wealth you have. Often there is a certain threshold that you have to exceed before the tax applies.

Taxes are generally a way for governments to collect resources needed to pay for, for example, schools, healthcare, roads and police that benefit the whole society. Taxes are also used as a way to redistribute money from the very rich to the poor. Economic disparities between countries are widening - the rich are getting richer and the poor are getting poorer. The increase in wealth is largely at the expense of the poor.

By distributing taxes, and thus costs, fairly among citizens, the state ensures that everyone has access to essential services and the conditions for a good life. Economic equality and stability are promoted.

There are different proposals on where to draw the line on wealth so that the individual who owns the wealth is affected by the tax. The criteria for defining an 'ultra-rich' or 'super-rich' should vary from one EU country to another, due to the economic, fiscal and social differences between member states.

In Belgium, for example, it has been proposed that anyone with SEK 14 million in assets beyond their main home and business assets should qualify as 'ultra-rich'. Oxfam proposes a 2% tax on millionaires with wealth above SEK 52 million, 3% on millionaires with wealth above SEK 520 million and 5% on billionaires.

The important thing is that the super-rich, or ultra-rich, are taxed more fairly.

In 2023, billionaires were SEK 34.5 trillion or 34% richer than they were in 2020. At the same time, five billion people have become poorer. The wealth of billionaires has grown three times faster than the rate of inflation. Meanwhile, 800 million workers have failed to keep up with inflation and have lost SEK 15.87 trillion over the last two years.

Since 2020, billionaires in the EU have increased their accumulated wealth by a third, reaching SEK 21.85 trillion last year. At the same time, 99% of the EU population has become poorer.

If we get one million signatures by October 9, the European Commission will make a proposal.

The EU can tax the richest in different ways. Either the EU can collect the money and redistribute it, or EU governments can tax their richest citizens and then use the revenue both at national and EU level. The key point is that the richest are taxed so that the money can be redistributed to those in society who need it most.

There are different ways of paying wealth tax and it varies in different countries. If the European wealth tax were to be centralized, the EU would need to develop a system that also ensures that there is no double counting. If each Member State is to have a system, it may vary.

When Sweden had a wealth tax, it was paid annually through the regular income tax return, where people declared their total wealth after deducting debts. In other countries, such as Spain and Switzerland, wealth tax is also paid annually through the tax return, while some countries tax certain assets more indirectly or through capital income taxes. There is a variation in the way the tax is administered but the annual payment via the tax return is a common method.

Oxfam Sweden wants a wealth tax for the richest in Europe. Together with civil society, economists, millionaires, activists, trade unions and politicians, we are calling on the EU to tax Europe's richest. Now we want all EU citizens to join this call to tax the rich.

Wealth tax is a type of tax levied based on how much value a person has in their assets after deducting their liabilities. Assets can include property, bank accounts and investments. The purpose of the tax is to reduce economic inequalities by taxing those with the most money. How much you pay depends on the country you live in and how much wealth you have. Often there is a certain threshold that you have to exceed before the tax applies.

Taxes are generally a way for governments to collect resources needed to pay for, for example, schools, healthcare, roads and police that benefit the whole society. Taxes are also used as a way to redistribute money from the very rich to the poor. Economic disparities between countries are widening - the rich are getting richer and the poor are getting poorer. The increase in wealth is largely at the expense of the poor.

By distributing taxes, and thus costs, fairly among citizens, the state ensures that everyone has access to essential services and the conditions for a good life. Economic equality and stability are promoted.

Inequality in the world is widespread and our planet is burning. A wealth tax could counteract this. Since 2020, the wealth of the five richest men in the world has doubled while almost five billion people have become poorer. The world's richest 1% own 43% of all global financial assets and emit as much carbon dioxide as the poorest two-thirds of humanity. In the EU, the five richest billionaires have increased their wealth by 76% since 2020, or SEK 65.55 million per hour.

A wealth tax is also a step towards balancing global power dynamics. Money buys power and the extremely rich can influence policy proposals and the media to their advantage, of which there are already many documented cases. So inequality needs to be reduced for the sake of democracy too.

The EU could use this wealth tax to raise much-needed revenue to fight inequality and the climate crisis. Specifically, it could be that:

- Paying for recovery after the pandemic;

- Financing the green transition inside and outside Europe;

- Increase the budget for international cooperation.

In 2023, billionaires were SEK 34.5 trillion or 34% richer than they were in 2020. At the same time, five billion people have become poorer. The wealth of billionaires has grown three times faster than the rate of inflation. Meanwhile, 800 million workers have failed to keep up with inflation and have lost SEK 15.87 trillion over the last two years.

Since 2020, billionaires in the EU have increased their accumulated wealth by a third, reaching SEK 21.85 trillion last year. At the same time, 99% of the EU population has become poorer.

Oxfam estimates that an annual wealth tax of:

- 2% on millionaires with wealth above SEK 52 million would yield SEK 52.9 million;

- 3% on millionaires with wealth above SEK 520.1 million would yield SEK 525.55 million;

- 5% on billionaires would yield SEK 10.49 billion;

In total, it would generate SEK 3.29 trillion each year. 

The sum is equivalent to:

- 40% of the EU Recovery and Resilience Facility (SEK 8.33 trillion)

- More than three times the EU's seven-year aid budget (SEK 904.9 billion);

- More than half of the highest estimate of the world's annual cost of loss and damage by 2030 (SEK 6.25 trillion).

It is a great tool that allows European citizens to ask the European Commission to propose new legislation on a specific topic. It's a way for you, as a citizen, to participate directly in political decision-making in Europe! If a citizens' initiative gets 1 million signatures in one year, the EU must put it on the political agenda.

The European Citizens' Initiative is called Taxing large fortunes to finance the green and social transition. In short, it is called Tax the Rich.

The initiative includes three main requirements:

- The European Commission will have to propose new EU rules to establish a European high net worth tax, based on Article 115 TFEU, which aims to harmonize national laws that directly affect the functioning of the EU market.

- The European Commission must propose an amendment to Council Decision 2020/2053 (on the EU's own resources) to allow the European wealth tax to contribute to the EU's own resources, i.e. the EU's own treasury.

- The European Commission must ensure that wealth tax revenues are used fairly. This money must go towards fighting the climate crisis and inequality, and specifically towards financing recovery funds, environmental and social policies, and international cooperation.

There are different proposals on where to draw the line on wealth so that the individual who owns the wealth is affected by the tax. The criteria for defining an 'ultra-rich' or 'super-rich' should vary from one EU country to another, due to the economic, fiscal and social differences between member states.

In Belgium, for example, it has been proposed that anyone with SEK 14 million in assets beyond their main home and business assets should qualify as 'ultra-rich'. Oxfam proposes a 2% tax on millionaires with wealth above SEK 52 million, 3% on millionaires with wealth above SEK 520.1 million and 5% on billionaires.

The important thing is that the super-rich, or ultra-rich, are taxed more fairly.

• Paul Magnette (Party leader of the Socialist Party - Belgium)
• Aurore Lalucq (Member of the European Parliament, Place Publique - France)
• Thomas Piketty (Economist - France)
• Marlène Engelhorn (Multi-millionaire, Tax Me Now - Austria)
• Lars Koch (Secretary General Oxfam Denmark - Denmark)
• Laszlo Andor (Secretary General, FEPS - Hungary)
• Conny Reuter (Global Coordinator, Progressive Alliance - Germany)
• Lainà Patrizio (Chief Economist, Central Organization of State Employees - Finland)

Well-known individuals and organizations supporting the call for a wealth tax in Europe include Marlene Engelhorn (co-founder of taxmenow and member of Patriotic Millionaires) as well as economists such as Gabriel Zucman and Thomas Piketty. 

Almost 200 MEPs supported the introduction of a progressive tax on extreme wealth in May 2022 to finance the EU budget.

In September 2023, nearly 300 millionaires, economists and politicians signed a letter calling on the G20 to tax extreme wealth. These include Abigail Disney, Austrian heiress Marlene Englehorn, economists Ha-Joon Chang, Thomas Piketty, Joseph Stiglitz and Jayati Ghosh, US Senator Bernie Sanders, former World Bank Vice President Serageldin, Colombia's Finance Minister Ocampo and other ministers and former prime ministers. Several Members of the European Parliament also signed the letter.

Almost three quarters of millionaires in G20 countries support higher taxes on wealth. Over half consider extreme wealth to be a "threat to democracy".

According to Eurobarometer (2022), almost 7 out of 10 Europeans believe it is necessary to tax the rich to support the poor, regardless of the political party they vote for. In addition, a recent Euronews survey showed that 92% of EU citizens believe that reducing social inequalities should be a priority for the EU. Inequality is reaching record levels, and Europeans want the EU to act. All political parties should take these results very seriously.

The new UN tax convention, United Nations Convention on International Tax Cooperation (UNFCITC), is moving forward. After a historic victory driven by African countries at the UN, all governments now need to agree on where and how the global rules will be set in the future. This summer, governments will discuss the scope and parameters of the convention.

In July 2024, the G20 agreed on a declaration stating that the countries of the world need to tax the richest. Their discussions will continue this fall.

Send an email to our Policy Manager Rosaline Marbinah, rosaline.marbinah@oxfam.se, and we will get back to you with materials and the like. 

To become a partner of the campaign, you need to share our values of a just climate and social transition. If your organization meets these criteria, we invite you to send us an email. Thank you for your commitment!

To spread the call and encourage others to sign, there are several options:

- Social media: share the link to this page on your social media accounts and encourage your friends and followers to share in turn. You can see examples of social media posts here.

- Websites and blogs: if you have a website or blog, create an article or page dedicated to the call and include a direct link to this page.

- Local events: at community events or local meetings, inform participants about the petition and create an opportunity to sign on the spot.

- Put up posters in your neighborhood: you can download posters here.

Thank you for your support, every little bit helps!

No, only EU citizens can support European Citizens' Initiatives.

Yes, you can sign until October 9, 2024.