This policy strengthens equity in fiscal systems by taxing those with the greatest capacity to contribute, thereby expanding the fiscal space needed to finance rights-based services and transitions. Its design emphasises higher taxation of wealth, inheritances, capital gains, and rent-seeking activities, alongside closing loopholes and tackling illicit financial flows that deprive states of revenues. It reduces reliance on regressive consumption taxes, which disproportionately affect the poor.
Implementation requires modernised tax administrations with strong digital systems, and international cooperation to curb tax base erosion and profit shifting. It also integrates transparency requirements and public reporting to combat misinformation and build public support.
The goal is to generate sustainable revenues for social protection, universal services and ecological transitions.
This policy is desirable because it it aligns taxation with human rights obligations, enhances social cohesion, ensures that fiscal burdens are distributed equitably to reduce inequality, discourages speculative profits, and demonstrates solidarity by ensuring the wealthiest contribute fairly to collective wellbeing.
