Will Denmark Lead Europe Towards a Super-Rich Tax?

Despite past failures, growing public support and recent international initiatives offer Copenhagen an opportunity to push for wealth taxation.

https://www.socialeurope.eu/will-denmark-lead-europe-towards-a-super-rich-tax



A recently released progress report from the Polish EU Presidency’s final meeting with the 27 EU Finance Ministers paints a sobering picture. Despite six months of dedicated effort, the Polish EU Presidency, which concluded at the beginning of July, failed to secure a consensus on any new common tax. The only notable movement was a possible extension of the Carbon Border Adjustment Mechanism (CBAM) to additional sectors, a measure that is more a shift in burden than genuine progress.

Extending the CBAM would compel companies from non-EU countries, including low-income nations such as Zimbabwe or Mozambique, to contribute to repaying the EU’s Next Generation EU (NGEU) debt. These costs could also be passed on to European consumers. While less visible than a direct tax, this approach disproportionately affects those least able to afford it.

Meanwhile, a consensus on a tax on extreme wealth, particularly as a source for new EU resources, remains elusive. The primary objection cited is that it would infringe upon national sovereignty. This presents a paradox: invoking sovereignty while allowing the ultra-rich to evade taxes is not true sovereignty; it is surrender. Sovereignty implies the power to act, and governments could and should act, both individually and collectively, to ensure that the wealthiest contribute at least as much as ordinary citizens.

Clear evidence now shows that billionaires and centi-millionaires—individuals with a wealth of $100 million or more—pay proportionally less tax than ordinary people. Furthermore, in most cases, their lifestyles and investment patterns contribute disproportionately to the climate crisis. To safeguard national competence on taxation, an EU agreement could focus on a set of common principles for such a tax, allowing national authorities flexibility in implementation, similar to the temporary solidarity contribution levied on the fossil fuel industry’s profits.

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