Pandemic Profiteers Exposed: A COVID-19 Pandemic Profits TAx as One Essential Tool to Reverse Inequalities and Rebuild Better Post-Pandemic, Oxfam America

Abstract

The COVID-19 pandemic has exposed the deep systemic inequalities and massive failures in our economic system, leaving tens of millions of people in the United States without jobs, devastating public services, and bankrupting countless small businesses. Yet as we face our deepest economic downturn since the Great Depression, a subset of companies is experiencing windfall profits. Seventeen of the top 25 most profitable US corporations, including Microsoft, Johnson & Johnson, Facebook, Pfizer, and Visa, are expected to make almost $85 billion more in 2020 super-profits compared to previous years, this research shows. If we continue with business as usual, these windfall profits will not be handed out to workers in wages, won’t be used to lower consumer prices, nor used to pay a bit more in taxes to fund healthcare workers. These profits will be paid to shareholders, a group of largely white, rich men who already control the vast majority of our country’s corporate stock. The wealthiest 10 percent of Americans own 87 percent of all corporate stock in the US, compared to less than 1 percent of shares owned by the bottom half. Racial disparities are even more stark. this paper estimates that 9 out of every 10 dollars of pandemic profits will end up with white Americans in 2020. Black and Latinx families—already disproportionately affected by COVID-19—receive only 16 cents each. COVID-19 presents us with a choice as a society: Do we want to continue distributing our economic resources to the already-wealthy and well-connected, or shall we choose to redeploy this money into the once-in-a-century fight against COVID-19 and the inequalities it brings in its wake? Resurrecting an emergency tax tool used during World War II, this paper estimates that temporarily taxing the excessive profits of the top 25 US companies could raise almost $80 billion annually to re-invest in tackling COVID-19 inequalities across the US and around the world.