Funding the party
Money is “used” & “moved” to create wealth, most times with a (relatively) short term gain perspective in mind. If money does not “move” it will not generate wealth. Part of that money is now needed to confront the climate crisis at hand and in full swing.
It will be used to fund and implement many of the proposals by the new to be created international organizations and by governments. It will create new and a major shift in existing jobs worldwide.
Corporate tax
All countries apply a flat tax rate on profit of 30%. (the howling on this one already reached our ears)
All Corporations and financial “constructions” will pay taxes at the rate of 30% on the profits relative to the turnover in each country minus investments in that given country;
Corporate, fiscal and legal regulation that allow the shifting of profits and turnovers made in different countries and by which very large corporations “manage” to pay ridiculous amounts or close to zero tax must be phased out by 2025;
Tax on footprinting of consumers in developed countries
Emergency footprint fee taken by governments to make people aware of their footprint with immediate effect:
Governments shall obtain by law with immediate effect the consumption of electricity, gas and fuel used by household and companies of the respective suppliers and work out a “footprint fee” accordingly. The governments will use these funds for local action-for-climate initiatives (convert farmland back to forests, isolate public buildings, educate people on changing habits…);
Governments shall increase the fuel prices with the sum needed to offset the produced CO2 emissions into projects (reforestation, carbon capture) in their own country;
Social corrections are of course to be applied. (People who have few resources don’t have enough money to isolate their homes, install solar panels, buy eco energy efficient cars. They live in badly isolated houses and as such “consume” more energy, drive old polluting cars and thus have a high footprint but that is not of their choice).
Especially developed countries shall redirect 5% of GDP towards “emergency” climate measures.
Contribution very wealthy individuals
If the net worth of an individual has reached 5 million US $, a 40% tax is levied on accrued wealth up to 10 million. This tax is used to fund initiatives described in this pamphlet.
If the net worth of an individual increases above 10 million US $, a 60% tax is levied on accrued wealth above that 10 million up to 20 million. This tax is used to fund initiatives described in this pamphlet.
If the net worth of an individual has reached 20 million US $, a 80% tax is levied on accrued wealth above that 20 million. This tax is used to fund initiatives described in this pamphlet.
Stocks:
These days approximately 200.000.000.000 Euro is traded on the stock markets every day (200 Billion that is). A 0.1% Climate fee on the daily turnover given 250 trading days a year would amount up 50.000.000.000 Euro/year (50 Billion/year);
Dividents:
The payout ratio (the amount of dividends paid to all types of shareholder relative to the net income) should be linked to the amount invested in reducing “footprint”. For example: the payout ratio = the % of costs incurred to make the company “greener” relative to total costs. If the “green” investments amount to 20% of all costs, payout dividend will be 20% of net income. As a result, the more the company invests in reducing its footprint, the more the shareholder will be rewarded. Off course, it goes without saying, that “green” investments is about significantly reducing CO2 output and other undesirable effects of the production cycle.
Forex:
From the Bank of international Settlements (and other sources - BIS's 2019 triennial survey, trading in FX markets reached an incredible $6.6 trillion per day in April of 2019). So one can assume that foreign-exchange trading (Forex) is now in the conservative range of 6 trillion Euro/day – blink your eyes once again: 6.000.000.000.000 Euro/day.
The Forex is the largest market in the world and the happy few “make money” from currency fluctuations related to the global economy.
If a very small contribution of 0.01% (one hundred of a percent !!!) on all these money flows is levied this leads to a sum of 60 Million Euro/day. Given 250 foreign-exchange settlements days a year the modest sum of 150.000.000.000 Euro is generated a year (150 billion Euro/year).
Derivatives - day trading:
After each trading hour of a position held, a 0.01% fee is levied on the amount of “gain” paid by the party of the than current gaining position irrespective of the time the position was held. This Earth renewable fee is calculated cumulatively. Thus the more money one “makes” on a position on final closure the more the contribution will be for mother Earth.
Tax shelters
Tax havens are to be abolished. Countries currently functioning as a tax haven will adjust their system by 2025 in order to create transparency that allows that every individual and corporation or other entity pays taxes.
After 2025 SWIFT, the global provider of secure financial services, and other companies providing similar services will be obliged to stop transferring any currencies or execute any payments in any form to and from these countries that have not adjusted their unfair system.
Given the contribution asked from tax shelters, stock markets, forex, derivatives trading, corporate tax, consumers, the contribution of the very wealthy totaling a cumulative sum of minimum 250plus Billion/year, it should be possible to realize some of the above listed projects over a decade or two. Say yourself, over 5 Trillion Eur should get us somewhere on the way.