Ó Ríordáin says wealth tax on ultra-rich could transform Europe

Labour TD Aodhán Ó Ríordáin said a global wealth tax on the ultra-rich must be on the agenda of the next European Parliament.

He said that the wealth tax would help fund the climate transition as well as a European plan for affordable housing.

As a minimum tax on corporations begins to come into effect he said “now is the time for the EU to back the growing global campaign to take on tax-avoiding billionaires.”

In 2021, the G20 countries – led by American President Joe Biden and then British Prime Minister Boris Johnson – agreed on a minimum 15% taxation rate for corporations, above Ireland’s traditional 12%.

Ó Ríordáin said, “if we want the EU to do more, then it will need more funding.”

“We face enormous challenges around how we finance the future, and how to put the EU on a sustainable financial footing.”

He noted that Brazil, led by leftist president Lula Da Silva, pushed for a billionaire wealth tax at the recent G20 meeting.

“Many said it would be impossible to achieve but a global minimum corporation tax rate of 15% is in the process of being implemented, so we know that with enough pressure we can ensure the richest pay their fair share.”

“The ultra-rich have perfected the ability to avoid tax, and research has shown effective personal tax rates of between 0% and 0.5% of their wealth.”

The Dublin Bay North TD said that the ultra-rich are “highly mobile” when it comes to avoiding paying tax, and the wealth of the world’s richest people is rising by 7-8% a year according to research by the EU Tax Observatory.

Calculations by economist Gabriel Zucman showed that a levy of 2% on Europe’s 500 billionaires would raise over €40 billion.

Ó Ríordáin pointed to work carried out by parties similar to Labour in Europe, noting that economic ministers in Spain and Germany, where Labour’s continental cousins are in government, have already put the plan into action.

“Electing an Irish voice to join the largest progressive force in Europe will ensure we can influence the next steps of a global campaign to ensure global tax fairness,” Ó Ríordáin said, as Labour looks to win its first European seat since 2014.

“It took years and a global recession before enough political will developed to tackle multinational tax avoidance but it is now finally happening. It’s time now for a global wealth tax, and the EU should lead the way.

“If we are to meet the challenge of climate change we urgently need to invest today in renewable energy, decarbonisation, nature restoration and new technologies, and energy efficiency renovations. We can’t afford to put this off. Europe needs billions of extra euro to do this.

“In the next parliament if elected as an MEP one of my key priorities will be delivering a European Plan for Affordable Housing but to do that also will need extra money. By taxing just a quarter of the annual gains of billionaires we can put the financial resources in place to invest in secure and affordable homes across Europe.”