Tax the Rich, European citizens' initiative calls for the tax on large wealth
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It was 2021 when Alexandria Ocasio-Cortez, the US congresswoman “star” of the Democrats, showed up at the Met Gala wearing a white dress with blood red writing “Tax the Rich". "Tax the rich” is a request that comes from several civil society campaigns in the face of growing inequalities, denounced on a regular basis and increasingly tangible in the spread of poverty and in the gap that increasingly separates rich and poor. And now in Europe comes a European Citizens' Initiative (ECI) calling for big fortunes to contribute to a fairer tax system – and with it, a fairer society.
Tax the Rich, the European citizens' initiative
On July 11, 2023 the European Commission has in fact registered the initiative “Taxing large estates to finance the ecological and social transition” which asks Brussels to institute a European tax on large estates and large fortunes (1).
The initiative of European citizens are therefore asking the Commission to introduce a European tax on large fortunes (2). A tax on large estates that represents a "own resource of the Union", the proceeds of which would be used to support European environmental transition and development cooperation policies, and which would contribute both to the fight against the climate crisis and to that against the growing inequalities.
In the promoting committee there are among others the French economist Thomas Piketty; the general secretary of Oxfam Denmark; representatives of the Tax me Now association: heirs who ask for higher capital taxation in the name of tax justice, active in Germany, Austria and Switzerland.
The European crises and the failure of the implemented policies
The proposal it starts from the recognition of the multiple crises that Europe has been going through for a decade now. Economic, health, environmental, social, political crises.
"These crises are symptomatic of policy failure economic, fiscal and social measures implemented by national governments and by the European Union, which have undermined health systems, public services, environmental protection, the fight against poverty and social exclusion"(3).
Among the goals of the EU are the promotion of citizens' well-being, the fight against exclusion, the guarantee of justice and social protection. The European institutions are committed to ensuring equality and tax fairness. Nevertheless "inequalities have steadily grown, to the point that today the richest 1% of the world's population own almost half of global wealth and that same 1% also emits more CO2 than the poorest half of the planet".
"To address these challenges it is essential to radically reorient the European Union towards a just and democratic climate transition".
It is then about "consolidate policies for ecological and social transition”, in the wake of various initiatives that are already moving in this direction (such as the Green Deal) through "the establishment, on the initiative of the European Commission, of a tax on large estates".
Tax the Rich
The patrimonial on large fortunes designed by the promoters of the initiative would respond to the requests of civil society, scientists, politicians, a movement that highlights the need for fairer and fairer taxation – Tax the Richin fact.
According to the proposal, three legislative interventions are needed:
1 – The European Commission should first of all prepare a proposal for a directive to establish a European tax on large wealth on the basis of Article 115 TFEU.
2 – Legislative action is also needed to ensure that the tax on large estates contributes to the system of own resources of the European Union.
3 – Third and last step, “the new own resource deriving from the large wealth tax should be linked to a fair ecological and social transition, through the related policies of the Union and the Member States. We therefore call on the European Commission to present proposals for regulations aimed at strengthening the Recovery and Resilience Facility, the funds linked to the Green Deal and Cohesion Policy".
The European citizens' initiative, exercise of democracy
It can be discussed. It will do? The European Citizens' Initiative is an exercise in democracy that allows citizens to make their voice heard in European politics. In detail, it is an instrument envisaged by the Lisbon Treaty to give citizens the opportunity to influence the Commission's work programme.
Once registered officially allows one million citizens from at least seven Member States to ask the European Commission to propose legal acts in the fields of its competence.
Brussels considered the initiative on the taxation of assets legally admissible. But this is only one of the first steps. Indeed, it is necessary to obtain the support of at least one million citizens, within 12 months, with a minimum number of signatures in at least seven member states and to present the initiative (4).
The European Commission he will then illustrate any action he intends to propose in response to the initiative and the reasons for the decision to act or not. The response will take the form of a communication formally adopted by the Commissioners and published in all the official languages of the Union. If it deems this an appropriate response, Brussels can decide to prepare a legislative act, but it is not required to propose a legal act. The follow-up to an ECI may or may not be a legislative initiative. In the meantime, however, the citizens' request has been put in black and white.
Sabrina Bergamini
Note
(1) European Citizens' Initiative: The Commission decides to register an initiative for the taxation of large wealth in the EU. https://ec.europa.eu/commission/presscorner/detail/it/ip_23_3741
(2) Taxing large estates to finance the ecological and social transition. https://europa.eu/citizens-initiative/initiatives/details/2023/000006_it
(3) Tax the Rich. https://www.tax-the-rich.eu/
(4) ICE. How does it work. https://europa.eu/citizens-initiative/how-it-works_it
