Taxing super-rich a tool to close the gender gap
We’ve lost everything,” says Ana, meeting her sister Rosa’s hopeless gaze. Both women are over 70 and live in Valparaíso, Chile, a region devastated in February by the deadliest forest fires in history. At least 133 people died, and many are still missing. These sisters are domestic workers and lost the house they inherited from their parents. In a matter of minutes, the efforts of two generations vanished, consumed by flames. Like many women without access to the formal financial system, they also lost their life savings which they kept in cash.
Record-breaking heatwaves, droughts, floods, and devastating wildfires have disproportionately affected women like Rosa and Ana around the world. In the past year, we’ve seen news of catastrophic fires in the United States, Greece, Nepal, Colombia, and Spain, to name just a few cases. Fierce fires were also reported in Venezuela, Ecuador, and Colombia. In Brazil, vast areas of tropical forest have been consumed. In Africa, from Equatorial Guinea to the coastal cities of South Africa, forest fires are forcing the evacuation of many areas. In February, bushfires in Australia killed livestock, destroyed property, and forced 2,000 people to flee towns near Melbourne. It was a reminder of the Black Summer fires of 2019/2020, which devastated an area the size of Turkey, killing 33 people and three billion animals.
Everywhere, the worsening climate crisis, environmental degradation, and extreme weather events, coupled with poor planning and inadequate adaptation measures, are intensifying the number of disasters and their victims. Their unequal effects are heavily marked by gender. Due to structural discrimination and traditional roles, women are disproportionately impacted, facing specific, interrelated risks. From obstacles to evacuation due to domestic and care work, to the limited capacity for recovery, every aspect of a disaster is marked by gender differences.
Women’s unequal access to economic resources, weaker decision-making power within families and communities, and reduced experience in political participation often result in limited access to assistance and support to rebuild their lives after disasters. To increase women’s resilience in the face of rising disasters caused by climate change, it is essential to invest in efforts to close the gender gap.
Unfortunately, as the United Nations warns, an alarming funding gap exists in achieving gender equality goals. The gap is staggering: $360 billion is needed annually to fulfill the commitments made by countries under the Agenda 2030 for Development. At a time when many countries in the Global South are struggling with empty coffers, the financing needed to end structural inequality requires greater international cooperation.
Today, only 4 percent of all bilateral aid is allocated to gender equality as its primary objective. However, this is not the only alternative. As a member of the Independent Commission for the Reform of International Corporate Taxation (ICRICT), we argue that all countries, especially developing countries, can increase their fiscal space by taxing those with the most wealth: corporations and super millionaires. A key proposal is to establish a global 2 percent minimum tax on the wealth of the super-rich. My colleague at ICRICT, renowned economist Gabriel Zucman, presented this program to the finance ministers of the Group of Twenty who gathered in Sao Paulo, Brazil, in February.
Inspired by the global minimum tax on corporations, this measure would apply to less than 3,000 individuals and raise about $250 billion annually. Taxing the ultra-rich, who currently pay almost no taxes, could make a huge difference. If the global minimum tax for multinational corporations were added, the additional $500 billion needed to combat climate change and invest in programs that close the gender gap and empower women can be achieved.
Amid the myriad crises, wars, high inflation rates, and heavy debts, investing in gender equality has ceased to be a priority for many governments. Therefore, as we commemorate International Women’s Month, we must remember that social progress cannot be achieved without gender equality. Recognizing women as critical players in development strategies is the path toward a more just, inclusive, and sustainable society. Making the super-rich, many of whom have benefited from crises, foot the bill is a tool within the reach of our governments that can have a tremendous impact on social justice. The Jakarta Post/Asia News Network
Magdalena Sepúlveda is a member of the Independent Commission for the Reform of International Corporate Taxation (ICRICT), executive director of the Global Initiative for Economic, Social, and Cultural Rights, and a former United Nations special rapporteur on extreme poverty and human rights.
The Philippine Daily Inquirer is a member of the Asia News Network, an alliance of 22 media titles in the region.
