The United Nations is eyeing a polemical move to bridge the shortfall in development finance: More taxes.
Tax rich countries $25 per ton of carbon dioxide emissions.
Tax currency transactions (half of a basis point) on “all trading” involving the dollar, euro, yen and pound sterling.
Allocate a portion of the European Union’s proposed financial transaction tax for international climate finance.
Allocate a portion of the International Monetary Fund’s special drawing rights.
Tax billionaires 1 percent of their wealth.
The proposals mean well: scale up funding for development. Traditional donor funding has not been able to meet the needs of developing countries. In 2011, for instance, the development assistance shortfall increased to $167 billion, according Rob Vos, the report’s lead author.
But the proposed measures are likely to raise a lot of eyebrows. The European Union’s carbon emissions tax scheme has generated a lot of “uproar” from a number of international airlines. Further, Germany is the only EU nation that has “agreed” to share 15 percent of FTTs to international climate finance, according to the report.
But the United Nations may find a supporter in the billionaire’s tax. Billionaire Warren Buffett expressed support for the rich paying more taxes in an opinion piece for The New York Times last year. He said most of the mega-rich “wouldn’t mind being told to pay more in taxes.”
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