The economist billionaires fear: this is how we get a wealth tax. Meeting Gabriel Zucman

In this episode, Gabriel Zucman, a prominent economist and director of the International Tax Observatory, discusses the critical issue of inequality and the taxation of the super-rich. Zucman, known for his recent book 'We Need to Tax Billionaires,' argues that the rise in billionaire wealth, particularly since the financial crisis of 2008, has led to increased power and influence among the ultra-rich, which poses a direct threat to democratic societies.

Throughout the conversation, Zucman shares his personal journey from academia to engaging in political action. He highlights the glaring gap in effective tax rates between the ultra-rich and the general population, pointing out that while middle and working-class citizens pay significantly higher percentages of their income in taxes, billionaires often pay much less. Zucman advocates for a minimum wealth tax, wherein billionaires must pay a set percentage of their wealth annually, ensuring they contribute fairly to society, reflecting the benefits they reap from public infrastructure and services.

Zucman also addresses criticisms regarding wealth taxation, emphasizing that past failures of such taxes were largely due to loopholes and exemptions favoring the wealthy, rather than the concept itself. He calls for a new, well-designed wealth tax that eliminates exemptions and provides a baseline contribution from billionaires. Drawing parallels with historical developments in progressive taxation, he expresses confidence that a movement towards fair taxation for the ultra-wealthy can and should begin in the UK, urging political leaders to take initiative in implementing these necessary reforms for social equity and stability.