Once a year, the quiet city of Davos becomes the financial and political capital of the world during the World Economic Forum in Davos. World leaders and executives from the world’s largest corporations debate for a few days the course What will the economy take? and global geopolitics.
In this context, almost 400 millionaires from 24 countries have presented an open letter asking for something that, a priori, goes against their own interests: higher taxes for those who, like them, have several hundred million dollars of assets.
Millionaires against their interests. The initiative of this group of millionaires it’s not new. They have been asking the economic authorities to meet in Davos on tax tightening for the richest. The difference is that this year different groups of millionaires have joined together, such as Patriotic Millionaires and Millionaires for Humanity to Oxfam to join forces and accuse the ultra-rich of capturing democracies, aggravating poverty, stopping innovations and damaging the planet with their economic control.
The group denounces in its letter that this extreme wealth “has led to extreme control” for those who risk everyone’s future in exchange for obscene profits. Among the signatures on this manifesto are those of actor Mark Ruffalo, Disney heirs Abby and Tim Disney, and real estate developer Jeffrey Gural, who directly proclaim: “Taxes for us. Taxes for the super rich.”
According to a poll conducted by the Patriotic Millionaires organization to G20 millionaires, 77% of those surveyed believe that the ultra-rich buy political influence, and 71% believe that this influence serves to create states of opinion in elections.
More millionaires than ever. The claim coincides with a moment in which the stock market situation is generating millionaires at a frenetic pace. The report Global Wealth Report 2025 prepared by UBS revealed that 379,000 new millionaires were created in the US alone during 2024.
This increase caused the world’s population of millionaires to go from 13.27 million people with more than one million dollars available to invest to more than 52 million people by the end of 2024.
The concentration of wealth that has been occurring in recent years is evident. According to data According to the Federal Reserve, in the US the richest 20% of households, with an average of $4.3 million, controlled 71.1% of the total wealth in 2024. On the other hand, the poorest 50% of households, with an average of $60,000, only accounted for 2.5% of the wealth.
Philanthropy falls short. Some rich people try to compensate for the imbalance in the distribution of resources with voluntary donations with initiatives such as The Giving Pledge, promoted by Warren Buffett, Bill Gates and Melinda French Gates, which has brought together more than 250 billionaires.
Each of them promised to give at least half of their fortune during their lifetime or by will. However, the creators themselves recognize that these initiatives are not enough to tackle the problem.
Warren Buffett confessed in his traditional letter to his shareholders that some of these philanthropic plans were frustrated by political decisions or due to the lack of consistency of donor commitment. “I have witnessed ill-conceived wealth transfers by cheap politicians, dynastic decisions and, yes, inept or peculiar philanthropists,” wrote the “oracle of Omaha in his last letter.
Less taxes for millionaires. According to a study Prepared by economists from the University of California, in the US the 400 largest fortunes paid an effective tax rate of 24% between 2018 and 2020, below the 30% paid on average by the rest of taxpayers.
The report concludes that this happens because capital gains on investments and certain business profits are taxed less than high salaries, allowing billionaires to reduce their real tax burden so that their income They do not depend on a salary in the companies they run or have founded, but of shares thereof.
This mismatch fuels the argument of the Davos letter, which urges global and local leaders to tax large assets more. However, it is a risky request since the simple proposal of a measure that would tax California’s large fortunes at 5% has caused some of the largest fortunes to have already packed their bags for other states with more lax tax policies.
Image | Flickr (Fortune Live Media, Gage Skidmore)
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