The Global Luxuries Tax

Abstract

This chapter proposes a policy to tackle the problem of global poverty, the Global Luxuries Tax (GLT). The GLT is a levy collected whenever a person, anywhere in the world, purchases a certain luxury good or service. The money collected will go towards a Global Poverty Fund to be used to alleviate the worst cases of global poverty. The tax is a miniscule percentage of the price of the good or service being purchased, so that the GLT raises money for the Global Poverty Fund by virtue of the high number of transactions taking place. The first part of the chapter will highlight two main pitfalls faced by any potential solution to the problem of global poverty, the Unintended Consequences Objection and the Implementation Objection. The second and third parts will introduce the idea of a Global Luxuries Tax, first in theory and then in practice. Examples of luxuries to be taxed by the GLT include air travel, financial transactions, texting on mobile phones, and procreation. In the final part some objections to the GLT will be considered, and appeased.