World Inequality Lab Report Proposes Global Progressive Tax to Tackle Inequality and Climate Crisis

The World Inequality Lab (WIL) report proposes a progressive global income tax topping out at 90 % for earners 5,000 times the average disposable income, and a wealth tax up to 20 % on millionaires and billionaires. Revenues would fund a Global Justice Fund and a World Sovereign Fund for climate mitigation, education and healthcare.

Common Dreams

Compiled by hundreds of researchers, the study is described as the first comprehensive effort to align planetary habitability with well-being. Its authors label the current international order “plutocratic” and call for a democratic alternative that delivers social progress.

Common Dreams

Today the top 10 % earn more income than the bottom 90 % combined and hold 75 % of global wealth; the poorest half own 2 %. The proposal would levy a 90 % marginal income tax on high earners and a wealth tax up to 20 % on the richest. Models suggest nearly 90 % of people could double their income by 2100, with over 99 % benefiting, including leisure and a habitable planet.

Common Dreams

Co-director Thomas Piketty called the current system “plutocratic” and urged a democratic shift. The authors say technical feasibility is not the barrier; political choice and coalition-building are needed to enact the tax plan and the energy transition. They warn that inequality reduction alone cannot secure a livable future without moving to renewable energy.

Common Dreams

• “The current international order is plutocratic,” — Thomas Piketty, French economist, co-director of World Inequality Lab

Common Dreams

• “It is essential to move away from this plutocratic system to a new democratic order.” — Thomas Piketty, co-director of World Inequality Lab

Common Dreams

• “Technical impossibility is not what is standing in the way, but rather the absence of a shared vision of social progress, at once concrete and radical.” — Authors of the World Inequality Lab report

Common Dreams

• “This means electrifying energy demand wherever feasible (such as transitioning vehicle fleets) and switching to low-carbon fuels (for example, in steel and cement production)," the report states.” — World Inequality Lab report

Common Dreams

The authors link inequality reduction to climate action, proposing tax revenues fund renewable-energy infrastructure, education and health services. They call for decarbonizing electricity, electrifying transport, and using low-carbon fuels in heavy industry. The report also envisions “sufficiency,” with shorter work hours, land-use reforms and a strong citizen movement.

Common Dreams

Implementation requires a dense network of labor unions, political parties, civic platforms and other initiatives to drive institutional change. The authors say political choice and sustained coalition-building will decide if the tax system and energy transition can be realized.

Common Dreams