The Vatican will host an event this Thursday (13 February) 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 (TBC) and former South African President Thabo Mbeki, and renowned economists, including Joseph Stiglitz, Gabriel Zucman and Jayati Ghosh, and philanthropist Abigail Disney, will call for international tax reform to protect democracy from extreme wealth.1
The livestreamed event will gather 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 will run from 8:30am to 5pm CET on Thursday 13 February 2025, and will be livestreamed on the YouTube channel of the Pontifical Academy of Sciences and Pontifical Academy of Social Sciences.3
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
Joseph Stiglitz, Nobel prize laureate and co-chair of ICRICT said:
“The current international tax system exacerbates inequality and deprives governments of the resources needed to address pressing global challenges. The Vatican workshop on tax justice will highlight the urgency of reforming the system by building it through the most inclusive international forum to promote justice, solidarity, and sustainability.”
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, will attend the event and say:
“Extreme wealth is threatening 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.”
-ENDS-
Event livestream link: https://www.youtube.com/@CasinaPioIV
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.
- The event will be livestreamed here on 13 February 2025, and will run from 8:30am-5pm CET.
- 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 shownto 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.