The Wealthy Who Demand Higher Taxes: A New Form of Patriotism?

A growing number of wealthy individuals are publicly advocating for higher taxes on themselves, challenging the traditional narrative of lower taxes for the rich. In the UK, 120 members of the 'Patriotic Millionaires' recently sent an open letter to the new prime minister, proposing a 2% wealth tax on assets over £10 million, which they estimate could generate £24 billion annually. This group, founded in the US in 2010, also has branches in Canada and campaigns against tax cuts for the wealthy, for higher minimum wages, and for wealth tax legislation.

Similar movements exist globally, such as 'taxmenow' in Germany, Austria, and Switzerland. Marlene Engelhorn, an Austrian heiress and member of taxmenow, famously donated 90% of her inheritance in 2024 to a citizens' assembly to decide its use. Annually, since 2023, a collective of wealthy individuals has issued open letters during the World Economic Forum in Davos, with nearly 400 millionaires from 24 countries signing the latest one.

These 'patriotic millionaires' frame their calls for higher taxes as a form of insurance for capitalism itself. They point to the 2008 global financial crisis, where taxpayer money bailed out financial institutions, as evidence that capital's survival depends on the national community. Investor Nick Hanauer warned in 2014 that unchecked inequality could lead to social unrest, arguing that proactive engagement from the wealthy is crucial for maintaining the system that generates their wealth. They counter the argument that they could simply pay more voluntarily by stating that systemic, universally applied regulations are needed, not just the goodwill of a few.

This trend stands in contrast to other wealthy individuals who seek to exert influence by directly engaging with or shaping state apparatus. Figures like Elon Musk under the Trump administration and Peter Thiel's Palantir exemplify this approach, where capital aims to capture the state as a primary customer and regulator, particularly in emerging sectors like AI, platforms, and defense. This dynamic is analyzed by scholars as a potential shift towards 'techno-feudalism' or a 'billionaire cabinet' era, where the relationship between the state and capital is being fundamentally redefined. The article suggests that South Korea, with its government-industry collaboration in sectors like semiconductors and AI, is part of this global transition, raising questions about whether capital will dominate the state or if the state can demand social responsibility alongside investment.