The Vatican is hosting today an event together with the Independent Commission for the Reform of International Corporate Taxation (ICRICT), where Pope Francis, along with current and former heads of state, including Spanish Prime Minister Pedro Sánchez, Brazilian President Lula and former South African President Thabo Mbeki, and renowned economists, including Joseph Stiglitz, Gabriel Zucman and Jayati Ghosh, and philanthropist Abigail Disney, are calling for international tax reform to protect democracy from extreme wealth.1
The livestreamed event gathered global leaders, policymakers, academics and civil society representatives to discuss the need to secure an ambitious UN tax convention – formal negotiations on which began last week2 – to overhaul, democratise and rights-enshrine the international tax system. On the agenda are talks on taxing the wealth of the superrich and the profits of multinational corporations, as well the essential role of tax in combating climate crisis and financing sustainable development.
The event kicked off at 8:30am CET and will run until 5pm CET. The event is being livestreamed on the YouTube channel of the Pontifical Academy of Sciences and Pontifical Academy of Social Sciences.3
The opening session of the event heard the following statements from the participants:
Spanish Prime Minister Pedro Sánchez said:
“Some seek to unravel hard won agreements, weaken multilateralism and shield the wealthiest and the largest companies from contributing their fair share.
“If we retreat now it would send a dangerous signal that the world’s biggest companies can dictate their own tax rules. The stakes could not be higher: inequality is deepening, trust in institutions is eroding, and without fair taxation we will never have the resources to fight poverty or climate change.
“Tax justice is not just a policy choice. It’s about upholding the principles of justice that underpin our societies. The question before us is simple: do we govern global taxation or do we let the wealthiest few govern us.”
Brazilian President Lula da Silva said:
“Justice and solidarity are central to inclusive and sustainable economic development. This is particularly relevant in a world that has seen been experiencing significant setbacks in recent years. Peace is threatened in several parts of the planet. Democracy is currently facing its most critical moment since World War II. The inequality between the richest and the poorest has increased significantly. The wealth of billionaires increased by US$2 trillion in 2024, three times faster than in 2023. Meanwhile, 60% of humanity still faces poverty. The superrich pay proportionally much less in taxes than the working class.
“In 2025, we have the opportunity to crate concrete and lasting solutions for more inclusive, fair and sustainable governance.”
Former South African President Thabo Mbeki said:
“We had actively encouraged and were therefore very pleased with the adoption by the UN General Assembly of the resolution which authorised the negotiation towards a UN Framework Convention on International Tax Cooperation.”
Former Senegalese Prime Minister Aminata Touré said:
“Africa has been depleted for so long of much its wealth and resources, it is still suffering from the ongoing tax injustice and this is a fundamental moral issue. A major problem of the global tax system is that a large amount of profit is shifted to tax havens. An estimate of $1 trillion in 2022. This is the equivalent of 35% of all the profit booked by multinational companies outside of headquarter countries, mostly in Africa, when it comes to minerals.
“World leaders must understand that tax cooperation is not just an economic issue. It’s a matter of justice and human rights…We must demand political will to put an end to the impunity of tax evaders and build a fairer, global tax system. By prioritising tax cooperation, countries have the opportunity to invest in the wellbeing of their citizens.”
Under-Secretary General of the United Nations Li Junhua said:
“Taxation is not an end in itself, it is the means to advance social, economic transformation. Inclusive and effective tax cooperation is in the interest of all countries and stakeholders. Only a fully inclusive international tax system will be legitimate and effective.
“True development is measured not just by economic growth, but by how effectively it upholds and advances the dignity and well-being of all people.
“Our choices and actions today will shape the future of generations to come. Let us unite to create a more equitable and sustainable world, a better future for all.”
Joseph Stiglitz, Nobel prize laureate and co-chair of ICRICT said:
“Fair taxation, inequality, are not just a matter of economic inefficiency, but also issues of morality. That’s why it’s so appropriate for us to be discussing them here and I welcome the role of the Pope in providing moral authority in a world where some of our leadership is going in the exactly the opposite direction.
“All of us have been concerned about what’s going on in the United States, including the withdrawal of the United States from the discussions going on in the [UN] tax convention. I think that’s probably a good thing.
“What has happened in the past with US negotiations is that they negotiation very hard on behalf of the multinationals, the tech giants. And then they force comprise…they water down the agreement, you get a weaker and weaker agreement. And then the United States refuses to sign or to ratify. So they get the rest of the world to adopt a weak agreement and then they don’t participate. So not it’s out in the open, the United States is not going to negotiate. The rest of the world has to work together to negotiate an agreement.”
Jayati Ghosh, award-winning economist and co-chair of ICRICT, said:
“Inequality is not just something that happens because of the economic system, it is very much the creation of the state. It results from the way governments have behaved and enabled exploitation. What’s important to remember is what is done by states, or human action, can also be undone by human action.
“The trouble is it’s not something that’s not going to have without public pressure…what this meeting can do is begin to prepare the ground for much wider public pressure. We need such pressure that even the nastiest of governments will feel compelled for their own legitimacy to take the right positions on these matters of tax justice.”
Abigail Disney, philanthropist and member of Patriotic Millionaires, said:
“As an American I am grief stricken as I watch the havoc that moral and spiritual corrosion are capable of when they sink their teeth into a democracy. The billionaire-heavy leadership currently running riot through everybody institutional in America did not arrive in Washington DC by accident. And they did not arrive their by merit either. Every word out of their mouth is an object lesson in the threat that they present to democracy as well as to the integrity of anyone listening to them.
“It is important to remember here that for the last have century wealthy Americans have been carrying out a well-funded and ferocious campaign to change the narrative about democracy and about money…Taxes kill economies they tell you. Taxes inhibit innovation. And when I hear this I wonder how did my grandfather and great uncle build a global juggernaut of a company when they were paying a marginal 91% tax rate on their income, and they were able to provide so much that even their great grandchildren are doing fine on over 50% in estate tax.
“We’re in a bind, not just democracy, but global stability itself in many cases rest in the hands of those least able much less willing to acknowledge that every single person of this planet is deserving of a life of dignity and that the world as it is currently shaped is along way from being able to make that happen. The only way out of this bind we are in is to get back to the place where it started: taxes.
“When we eviscerated our system of taxation. When we let the wealthy all the shots, we started down the path that has led us to this point. When we tax income from work, we must tax it more favourably and more progressively than when we tax capital. And we must tax wealth, not just income.
“Billionaires complain about this but my feeling is if you can’t live on $999 million a year, you have bigger problems.”
Pope Francis is expected to add his voice to calls for international tax reform to protect democracies in a statement due to be released at the close of the meeting.
ICRICT is also celebrating its tenth anniversary, and its successful fledging out of the Tax Justice Network which has incubated and hosted the Commission until this year.
Alex Cobham, CEO of the Tax Justice Network, participating in the event today, said:
“A line was draw in the sand today. On one side are people from all walks of life, from concerned citizens to millionaires, from activists to global leaders and the Pope, committing to protect our livelihoods, democracies and planet from the dangers of extreme wealth. On the other side are Trump and a handful of billionaires and corporate giants, hellbent of destroying our way of life.
“Extreme wealth is a threat to our way of life, from overtaking democratic processes, to destabilising our economies and destroying our planet. All too often, tax has been manipulated to prioritise the wealth of the superrich, instead of prioritising the needs and wellbeing of people and planet. We now have the best shot in a century to undo this, by establishing a democratic UN tax convention that uses tax as a tool to protect people, economies and the environment.
“Healthy democracies and healthy tax policies go hand in hand. Democracy as we know it today was born out this recognition: no taxation without representation. We all contribute as part of our participation in the social contract, so that we can all live better lives together. But the superrich and the biggest corporations have been allowed to operate beyond the reach of tax, and so beyond the reach of the will of the people, for so long that they’ve now accumulated enough wealth to threaten democracy itself. The best way to defend democracy is with more democracy, and that is exactly what the UN tax convention will do. It will bring the superrich and the biggest corporations back under democratic governance, and tax their wealth in accordance with the will of the people.
“We congratulate ICRICT on 10 years of game-changing work on progressive tax reform. The Commission’s ability to bring together global leaders to champion tax justice at this crucial moment in time is a testament to ICRICT’s success and importance on the world stage.”
The rise in extreme wealth among the superrich is directly linked to lower economic productivity4; to non-rich households going into debt5; and to people living shorter lifespans.6
The harm of extreme wealth on democratic process has gained more public attention in recent months, particularly following the US inauguration of billionaire Donald Trump, where the world’s three richest men – Elon Musk, Jeff Bezos and Mark Zuckerberg – had front-row seats.
A UK-based survey published last month found that two-thirds of people believe the superrich have too much influence on politics.7 A global survey of millionaires and billionaires also published last month found that 70% believe that extreme wealth is leading to a decline in trust of the media, the justice system and democracy.8
New research from the New Economics Foundation and Patriotic Millionaires International has called for the introduction of an “extreme wealth line” – the point at which the concentration of wealth becomes harmful to democracy, society, the economy and the environment.9
Last month also saw the launch of the Tax the Superrich campaign, a global campaign supported by a diverse network of organisations committed to creating a fairer and greener world by taxing the superrich.10
-ENDS-
Event livestream link.
Contact
ICRICT: Diego Llumá, Global Communications Manager, +5491169319181 [email protected]
Tax Justice Network: Mark Bou Mansour, Head of Communications, [email protected] or +44(0)7562 403078
Notes to editor
- See the full programme for the event here.
- More information on last week’s UN negotiations is available here, and more information on the UN tax convention here.
- A livestream of the event, and recording of the above statements, is available
- Research shows large rise in wealth among the 1% in the US over the past 40 years did not lead to more investments, and instead resulted in dissaving among non-rich households. Research also shows that “a large rise in inequality generates a saving glut of the rich, which can push an economy into a debt trap characterized by low interest rates, high debt levels, and output below potential”. Indebtedness of non-wealthy households brought on by extreme wealth of the richest households brings about lower productivity. Conversely, another study found that wealth taxes resulted in more investments.
- Research shows a large rise in savings among the 1% in the US over the past 40 years brought on dissaving among non-rich households.
- Wealth inequality has been shown to be sufficiently extreme that progressive wealth redistribution could add 2.2 years to the US population’s life expectancy as a whole.
- See the Fairness Foundation’s survey here.
- More information about the global survey here.
- See the new research by the New Economics Foundation and Patriotic Millionaires here.
- More information about the Tax the Superrich campaign is available here.
About ICRICT
The Independent Commission for the Reform of International Corporate Taxation (ICRICT) is a group of leaders from around the world who believe that, at this moment in history, there is both an urgent need and an unprecedented opportunity to bring about significant reform of the international corporate taxation system. The Commission aims to promote the reform debate through a wider and more inclusive discussion of international tax rules than is possible through any other existing forum; to consider reforms from a perspective of global public interest rather than national advantage; and to seek fair, effective and sustainable tax solutions for development.
The Commission is co-chaired by Jayati Ghosh and Joseph Stiglitz, and includes José Antonio Ocampo, Eva Joly, Edmund Fitzgerald, Léonce Ndikumana, Irene Ovonji-Odida, Martín Guzmán, Kim Jacinto Henares, Ricardo Martner, Gabriel Zucman, Magdalena Sepúlveda, Thomas Piketty and Wayne Swan.