The progressive taxation of wealth is a powerful tool in addressing global inequalities and mobilising resources for sustainable development. As the world grapples with rising economic disparity, financial transaction taxes (FTTs), net wealth taxes, and resource rent taxes emerge as viable solutions for domestic resource mobilisation. These mechanisms support poverty eradication, reduce inequality, and align with Sustainable Development Goals (SDG) 1 and 10.
The Urgent Need for Wealth Taxation
Economic inequality has reached unprecedented levels, with the top 1% accumulating vast wealth while the bottom 50% struggles to access basic services. The 2022 World Inequality Report highlights how wealth concentration has intensified, exacerbated by the COVID-19 pandemic. In regions like Sub-Saharan Africa, extreme poverty persists despite economic growth, largely due to regressive tax structures reliant on consumption taxes like VAT.
Key Tax Instruments for Domestic Resource Mobilisation
- Financial Transaction Tax (FTT): A minimal levy on financial trades could generate substantial revenue while curbing speculative trading. Studies suggest an FTT could yield up to $900 billion annually, providing crucial funds for social and economic infrastructure.
- Net Wealth Tax: Progressive wealth taxation in European and Latin American countries demonstrates its potential. A global wealth tax on the richest 3,000 individuals could raise approximately $250 billion annually.
- Property Taxation: Equitable and efficient, property taxes target high-income earners and provide a stable revenue source for urban development.
- Resource Rent Tax: Extracting fair taxation from natural resource industries ensures that economic rents benefit broader society rather than private corporations.
The Role of the G20 in Advancing Progressive Taxation
The G20 presents a critical platform for promoting wealth taxation as a strategy for reducing inequality and eradicating poverty. By supporting international tax cooperation, particularly through the UN framework, global leaders can drive the implementation of progressive tax policies that foster inclusive economic growth.
Conclusion
Taxing wealth is essential for bridging the inequality gap and financing sustainable development. Policymakers must prioritise these progressive tax measures to ensure economic justice and long-term resilience. A fairer tax system is not just an economic necessity but a moral imperative.
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University. 
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society). 
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.