Progressive Fiscal Policies to End Austerity: Taxing Wealth to Fund the public care
Income inequality and the lack of investment in public services are factors hindering sustainable development. However, financing for public services can be a significant challenge. One solution to this is to adjust progressive fiscal policies to tax wealth more effectively for critical societal initiatives like the care economy. Why the concept of adjusting progressive fiscal policies to tax wealth is essential and what is its implications for funding the care economy?
THE NEED FOR PROGRESSIVE FISCAL POLICIES TO FUND SOCIAL SPENDING
The funding of social spending in order to combat inequality is urgent as the care economy includes a variety of services that are essential for a society's health and production, such as healthcare and education. Progressive fiscal policies’ concept aligns well with funding the care economy because it ensures that those who have more resources also contribute more to the services that benefit society as a whole, distributing the tax burden fairly, with the wealthier individuals and corporations paying a higher percentage of their income in taxes. As such, progressive fiscal policies must be used to help fund public care as a way to reduce inequality and to move forward to sustainable development.
ADJUSTING PROGRESSIVE FISCAL POLICIES TO TAX WEALTH
There is an example from UK Government relevant to adjusting existing progressive fiscal policies to properly fund the care economy. The UK Wealth Tax Commission estimates that a one-time 1% wealth tax on households with assets over £1 million would produce $260 billion, more than enough to support social care and the NHS for an entire year. Several steps were included as efforts to address the gap, including:
Wealth Tax: Implementing a wealth tax on assets held by the wealthiest individuals. A wealth tax is an annual levy on the net wealth of individuals above a certain threshold, and the revenue generated can be channeled into the care economy.
Inheritance Tax: Increasing inheritance taxes to prevent the concentration of wealth across generations. These funds can be used to support long-term care services for the elderly.
Closing Tax Loopholes: Closing loopholes and offshore tax shelters that allow wealthy individuals and corporations to avoid paying their fair share of taxes.
These are some measures that can be a part of progressive fiscal policy to raise revenue for financing public care.
In conclusion, the primary strategy for financing the care economy is to alter progressive fiscal policies to more efficiently tax wealth. Wealth taxes, inheritance taxes, and the elimination of tax loopholes can all be implemented to create a more equal society, and appropriately funded public care to promote the well-being of all its citizens.
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