By Peter Wilby (Guardian UK) It is surely admirable — isn’t it? — that 40 US billionaires, led by Bill Gates and Warren Buffett, have signed the “giving pledge” to donate half their fortunes to charity.
But let’s be clear. Money paid to charity is exempt from tax; the US treasury already loses at least $40bn (£25bn) a year from tax breaks for donations. So billionaires, not the democratically elected and (at least theoretically) accountable representatives of the people, get to decide on the good causes.
As Michael Edwards, a former World Bank adviser, asked in a study for the thinktank Demos, Small Change: Why Business Won’t Change the World: “Why should the rich and famous decide how schools are going to be reformed, or what drugs will be supplied at prices affordable to the poor, or which civil society groups get funded for their work?”
If the rich really wish to create a better world, they can sign another pledge: to pay their taxes on time and in full; to stop lobbying against taxation and regulation; to avoid creating monopolies; to give their employees better wages, pensions, job protection and working conditions; to make goods and use production methods that don’t kill or maim or damage the environment or make people ill.
