by Radek Stech
Shall we see more 'Red' Ferraris on our streets...?
Ferrari President, Luca di Montezemolo, supported the idea that the rich should be paying higher taxes in the current financial climate. “For reasons of equity and solidarity” and in return for Berlusconi’s commitment to introducing more efficient state management. Such a dialogue is not the only one. Guardian reports that the contagion of “tax me harder” is becoming a dominating point of discussion in deluxe European salons. Germany and France consider establishing a wealth tax amidst corporate estimations that it could bring billions of Euros to the economy. The initiatives have received some criticism, especially from the European left which senses rhetoric hypocrisy.
In the Law & Policy journal Christopher Arup addresses power and responsibility in the Global Financial Crisis. His main argument is that the response to the crisis should include ‘the cultures of the elites’. Crucially, elites should change as the market itself is incapable of bringing the required changes in the financial regulation.
Hopefully “tax me harder” rhetoric will lead to substantial fundraising which will reduce the impact felt predominantly by the poorest and middle-class Europeans. Yet, we should remember that it is in the best interest of the wealthiest to maintain the purchasing power of the ordinary people. At least, in order to keep the ‘Italian dream’ of owning a Ferrari still open for most of us.
The Guardian, ‘Tax us more, say wealthy Europeans’
Christopher Arup, ‘The Global Financial Crisis: Learning from Regulatory and Governance Studies’, Law & Policy, Volume 32, Issue 3, pages 363–381, March 2010
