This policy introduces innovative taxes designed to address inequality, stabilise financial systems, and fund poverty eradication and sustainability measures.
A windfall profits tax targets extraordinary gains in sectors such as energy, banking, and commodities, channelling revenues into social protection and climate action. A financial transaction tax (FTT) applies small levies on high-frequency trading in stocks, bonds, and derivatives, curbing speculative excess while raising significant revenue for welfare and international solidarity funds. Wealth taxes target extreme concentration of wealth by imposing progressive levies on the ultra-rich, coordinated internationally to avoid capital flight and evasion. Finally, carbon taxes impose a predictable and rising price on emissions, paired with border adjustments and revenue recycling to protect low-income households through cash transfers or subsidies.
Implementation requires robust legal frameworks, strong enforcement capacity, and international coordination, particularly for FTTs and wealth taxes.
The goal is to diversify fiscal space, reduce inequality, and redirect corporate and financial behaviour toward sustainability.
This policy is desirable because it provides predictable resources for governments to finance rights-based investments, makes taxation more equitable, and enables both North and South to advance just transitions.
