Ei-iE

Every year, an estimated USD 480 billion is lost to tax abuse by multinational corporations and overly rich individuals. By addressing these international tax abuses and introducing progressive taxation, nations could increase tax-to-GDP ratios by five percentage points. Redirecting just 20 percent of recovered revenue could drastically expand educational access, fund millions of new teaching positions, and significantly enhance teacher salaries worldwide.

These findings are highlighted in the new report: "Stolen futures: The impacts of tax injustice on the right to education.". Led by the Tax Justice Network (TJN), the report identifies tax justice measures as vital tools for funding quality education for millions of children and helping to mitigate the ongoing teacher shortage.

The report underscores that proposals being discussed globally to clamp down on tax abuse and implement a small wealth tax on the richest 0.5 per cent would generate sufficient revenue to provide education for the 72 million primary school-aged children currently out of school, and to hire the necessary 13 million primary teachers worldwide.

“According to the latest projections, closing the teacher gap in primary and secondary education by 2030 will cost USD 120 billion annually”, stated EI’s General Secretary, David Edwards. “Education International’s Go Public: Fund Education campaign calls for governments to increase funding for public education and invest in the teaching profession. To do this, fair and progressive tax systems are crucial. Prioritizing education in national budgets is not enough, this must be coupled with tax reforms to enhance tax mobilization and increase government budgets as a whole.”

Strengthening global tax governance

The report emphasises the need for a global commitment to tax justice, echoing calls from international actors and the voices of educational advocates worldwide.

The G20, a group of the world’s major economies, is actively discussing proposals to tax the super-rich more effectively, reflecting a growing global momentum to address tax havens and wealth inequality. This year, under Brazil's presidency, the G20 considered a bold initiative to implement a minimum 2 percent wealth tax on billionaires, which could potentially raise between USD 200 to USD 250 billion annually. This initiative underscores a significant shift towards curbing global inequalities and enhancing public services through better taxation of the world's wealthiest individuals.

A majority of countries also agreed last summer on the framework and objectives for negotiating a potentially transformative UN tax convention. The agreed terms aim to directly confront tax evasion and avoidance by high-net-worth individuals, ensuring their effective taxation. The UN General Assembly is expected to vote later this month on whether to formally commence negotiations based on the agreed terms.

Simultaneously, the linkage between tax policy and governments’ human rights obligations, such as the right of the child to education under the UN Convention on the Rights of the Child, is increasingly recognised within global policy circles.

Education International has repeatedly called on policymakers, civil society, and international organisations to commit to tax justice reforms, with a particular emphasis on empowering the most vulnerable communities. Ensuring that corporations and the wealthy contribute their fair share is essential to fostering equitable education systems and providing all students with access to qualified teachers and quality learning environments.