The Global Prosperity Dividend Act: Establishing a Progressive Wealth Tax for a World Public Investment Fund

The Global Prosperity Dividend Act: Establishing a Progressive Wealth Tax for a World Public Investment Fund

Preamble

The World Parliament recognizes the escalating crisis of global inequality, where immense private wealth coexists with widespread poverty, environmental degradation, and underfunded public services. This imbalance not only undermines social cohesion and democratic principles but also impedes our collective capacity to address existential threats such as climate change, pandemics, and technological disruption. We affirm that wealth, particularly extreme wealth accumulated through the exploitation of common resources and collective labor, carries a societal obligation. It is time to reclaim a portion of this accumulated capital for the common good, investing in a future of shared prosperity, sustainability, and genuine collective ownership.

Article 1: Establishment of the Global Progressive Wealth Tax (GPWT)

1. Taxable Base: A Global Progressive Wealth Tax shall be levied annually on the net worth of individuals whose total assets, minus liabilities, exceed a globally defined threshold. This includes all forms of property, financial assets, real estate, and other valuable holdings, regardless of their geographical location.
2. Progressive Rate Structure:
* Tier 1 (Threshold - X million USD): Exempt or a nominal administrative fee (e.g., 0.1%) to ensure broad participation and data collection.
* Tier 2 (X million - Y million USD): A progressive rate starting at 2% annually.
* Tier 3 (Y million - Z million USD): A progressive rate starting at 4% annually.
* Tier 4 (Above Z million USD - Ultra-High Net Worth): A progressive rate starting at 6% annually, increasing for the highest echelons of wealth.
Specific thresholds (X, Y, Z) to be determined by an expert committee, subject to regular review and adjustment based on global economic indicators and inflation.*
3. Valuation: Assets shall be valued at their fair market value. Standardized global valuation methodologies shall be developed and implemented by the World Tax Authority (see Article 3).
4. Exemptions: Reasonable exemptions for primary residences below a certain value and essential personal belongings may be considered, ensuring the tax targets accumulated capital, not basic necessities.

Article 2: Creation of the World Public Investment Fund (WPIF)

1. Purpose: All revenues generated from the Global Progressive Wealth Tax shall be allocated directly to the World Public Investment Fund. The WPIF's mandate is to finance critical public goods and services globally, accelerate the transition to a sustainable post-capitalist economy, and empower communities.
2. Investment Priorities: The WPIF shall prioritize investments in:
* Global Green Transition: Renewable energy infrastructure, sustainable agriculture, ecological restoration, climate adaptation and resilience projects.
* Universal Public Services: Funding for global access to healthcare, education, clean water, sanitation, and affordable housing initiatives.
* Public Infrastructure: Development of sustainable transportation networks, digital infrastructure for public access, and resilient urban planning.
* Worker Cooperatives and Social Enterprises: Direct investment and support for the establishment and expansion of worker-owned and democratically managed enterprises, fostering collective ownership and democratic control over production.
* Public Research & Development: Funding for open-source research in critical fields like medicine, sustainable technologies, and artificial intelligence, ensuring that innovation serves the common good, not private profit.
* Disaster Relief and Humanitarian Aid: Providing rapid and sustained support for regions affected by natural disasters, conflicts, and public health crises.
3. Governance: The WPIF shall be governed by a democratically elected and globally representative board, comprising delegates from member states, civil society organizations, and expert bodies. Its operations shall be fully transparent, with regular public audits and accountability mechanisms.

Article 3: International Enforcement and Anti-Avoidance Measures

1. World Tax Authority (WTA): A new World Tax Authority shall be established under the World Parliament to oversee the implementation, collection, and enforcement of the GPWT. The WTA shall collaborate with national tax authorities.
2. Global Asset Registry: The WTA shall establish and maintain a comprehensive, centralized, and secure Global Asset Registry, requiring mandatory reporting of all high-value assets and beneficial ownership information.
3. Anti-Tax Avoidance: Robust measures shall be enacted to combat tax evasion and avoidance, including:
* Abolition of Tax Havens: Member states commit to dismantling all mechanisms that facilitate tax evasion, including shell corporations and anonymous trusts. Non-compliant jurisdictions shall face severe sanctions.
* Automatic Information Exchange: Mandatory, multilateral automatic exchange of financial account information, beneficial ownership data, and tax rulings between all member states and the WTA.
* Exit Taxes: Introduction of robust exit taxes on individuals attempting to renounce citizenship or relocate assets to avoid the GPWT.
* Penalties: Severe penalties, including asset forfeiture and criminal charges, for individuals and entities found to be engaging in tax evasion or facilitating it.

Article 4: National Implementation and Sovereignty

1. National Collaboration: Member states shall enact enabling legislation to facilitate the collection of the GPWT within their jurisdictions, providing the necessary data and enforcement support to the WTA.
2. Complementary National Taxes: This Global Progressive Wealth Tax is intended to complement, not replace, national wealth taxes or other progressive taxation schemes that member states may choose to implement.

Article 5: Review and Adaptation

This Act shall be subject to review by the World Parliament every five years to assess its effectiveness, adjust tax rates and thresholds as necessary, and adapt to evolving global economic conditions and societal needs.

Conclusion

The Global Prosperity Dividend Act represents a crucial step towards building a more equitable, sustainable, and collectively prosperous world. By channeling extreme private wealth into a shared public fund, we can empower humanity to address its most pressing challenges, foster genuine democratic ownership, and lay the foundations for a post-capitalist future where the well-being of all takes precedence over the accumulation of private capital. This is not merely a tax; it is an investment in our shared future, a declaration that the collective good can and will prevail.