Evolutionary social capitalism
Inequality is a major source of conflict.
As a species, humans need to compete with some expectation of success, and we need to be able to demonstrate our success to others – Capitalism and differentiation is good.
However, as a society, it is unhealthy when wealth and resources are disproportionately controlled by a few. Sharing wealth reduces disparity - Socialism is good.
A global system should aim to resolve these competing demands by putting in place a lower bar, consisting of a global minimum wage and a social security service for the unemployed, aged and disabled, and a top cap implemented by a wealth tax to prevent excess accumulation. Between these boundaries, competition should be encouraged to enable our competitive natures.
The proposed wealth tax would promote competitive advantage by allowing individuals to accumulate up to £25M in assets, so that they can benefit their families and their inclinations (and can be seen to do so), and introduce a new tax, so that every year a 10% charge on assets over £25M would be put back into the wider system. Standard Income tax rules would also apply.
Successful individuals can still accumulate beyond £25M, but this policy will reduce the ability to become untouchable princelings. It will also gradually reduce the ability of less successful generations benefiting from a single successful ancestor.
Assets would include all property, shares, businesses, cars, planes, boats, art, cash in all its forms at a point in the year.
Risk: Individuals will try to avoid the tax by masking ownership of assets, and denying applicability. Mitigation: Laws will have to be refined to ensure compliance and collection. Threshold and tax rate will be reviewed each year.
Risk: No Oligarch or Princeling is going to vote for this. A wealth tax will be difficult to enforce until it can be implemented globally.
Risk: Wealthy investors reduce spending on risky business ventures. Mitigation: tax incentives closely monitored to ensure it does not become a loophole.
Risk: Wealthy philanthropists reduce charitable donations. Mitigation: The global system should be responsible for funding research and disaster event activities. Charities should also exist so people can fund areas not covered by the state.
Supported by: Global Asset registers. Laws to be able to seize shares, cash, properties and sell them.