The Tax Justice Network is supporting global partners in highlighting the impact of regressive tax policies and financial secrecy on women’s fundamental human rights, something we campaign on and write about. Here’s some information about the #TaxJustice for Women’s Rights Global Days of Action. The dates for your diary are 8-24 March 2017.
The economists Thomas Piketty, Emmanuel Saez, Facundo Alvaredo and Anthony Atkinson have played a big role in helping analyse and popularise the role that tax rate cuts for wealthy folk play in fostering economic inequality, particularly the income shares of the top 1 percent of people compared to everyone else. As they put it in 2013:
“The evolution of top tax rates is strongly negatively correlated with changes in pre-tax income concentration.”
Their findings have of course been attacked, not least by certain players keen for taxes on wealthy people to stay low.
Now there’s a new US-focused study by Douglas Campbell and Lester Lusher, called Drivers of Inequality: Trade Shocks versus Top Marginal Tax Rates. It seeks to check on these findings:
On March the UN Secretary-General’s High-Level Panel on Women’s Economic Empowerment held their inaugural meeting. The panel:
“intends to put women’s economic empowerment at the top of the international agenda, including by defining actions to speed up progress under the 2030 Agenda for Sustainable Development.”
Gender responses and gender impact are clearly seen as key ways to anchor the success of the UN’s Sustainable Development Goals. And we’re pleased that this is happening. But there is a jarring note.
“If George Osborne [the UK Finance Minister] slashes the rate further in the Budget – from 45p to 40p for those on £150,000 or more – will put even more money in men’s pockets.
Analysis by the Tax Justice Network found there are 339,000 people (284,000 men and 55,000 women) earning above that level.
Cutting the rate to 40p would be worth £3.3billion to high-earning men (89%) but just £428million to wealthy women (11%)”
(Hat tip to Jolyon Maugham for that 339,000 figure, of which 83.8% are men.) We recently explained how a proposed cut to the UK top rate of income tax from 45 percent to 50 percent (for incomes over £150,000) would see 83.8 percent of the tax cut going directly to men, and 16.2 percent to women.
That’s counting the number of taxpayers affected. But now let’s ask how much of the £ value of this tax cut would go to women.