Moving beyond the either/or debate of philanthropy and taxation, philanthropists have a role to play in securing fair taxation

In 2019, historian and author Rutger Bregman caused a stir at the Davos World Economic Forum. Calling out the rich, tax avoidance, and philanthropy, he said: ‘We’ve got to be talking about taxes. That’s it: taxes, taxes, taxes.’ But, in a recent LinkedIn post, the Utopia for Realists author claims to have changed his mind. No longer does he feel that philanthropy is ‘a distraction from the real and only solution: the taxation of wealth.’ While he maintains that people should pay taxes first and foremost, his latest comments beg the question: how can philanthropy be a bridge into creating fair tax systems?  

Despite a global polycrisis, 300 of the largest foundations in the UK have net assets exceeding £80 billion. According to a study by L’Atelier BNP Paribas, an independent research subsidiary of the French bank, Britain is the second most unsustainable of 36 major economies. Wealth inequalities are undermining social mobility and threatening to provoke civil unrest, while housing and childcare costs remain record high. Shockingly, contemporary global inequalities are close to early 20th century levels.  

Public support for more effective taxes on wealth is increasing. Polling collected in December 2023 for the Patriotic Millionaires (conducted by Survation) revealed that some of the richest people in G20 countries are themselves supportive of higher taxes on extreme wealth. Across the globe, our tax regimes require a significant overhaul if we are to redress grave economic inequalities present within and between nations.