Why this millionaire is protesting at Davos, calling for greater taxes on the rich

Phil White wants the government to take the money, please.

The self-described British billionaire protested outside the World Economic Forum in Davos, Switzerland, with a sign that read: “Tax the rich.”

The forum is an annual gathering that draws hundreds of world leaders, CEOs, non-governmental organizations, and other international elites to the Swiss resort town to discuss issues of global importance.

White, a former business consultant and engineer from England, can be a guest if he wants. Instead, he chose to remain on the sidelines as a protester.

He is one of the founding members of the Patriotic Millionaires group, an organization of the ultra-rich calling for higher taxes, well, themselves. This is part of White’s conversation with As it happens host Nil Koksal.

Phil, you’ve been standing in the snow in Davos – -18 C today, as I understand it – [with] signature-painted on the hand that reads: “Tax the rich.” Why did you decide to do that?

In Davos, we have the rich, the World Economic Forum, everything happens there. And what better place to deliver this message… to make a difference in society?

When I look at what’s happening in many countries around the world during the pandemic, you know, we’ve seen the rich get richer and, frankly, the poor get poorer. And we have to do something about it.

I and some colleagues I work really call for the rich to pay more part of the tax burden, and let’s lighten the burden that is really struggling.

There has been much discussion during the pandemic about what needs to change and how we can make those changes. Do you think it hasn’t happened yet?

I was just thinking today about the fact that during the pandemic we are all talking about rebuilding better. And we have rebuilt business as usual, which seems to be a real pity. Why this happened, I don’t know.

[Anti-poverty organization] Oxfam published a report at the start of the World Economic Forum, showing only that during the pandemic, the rich held about two-thirds of the new wealth created. So it’s not like we’re going to a fairer or more equal society. We are actually headed the other way.

It was almost exactly three years ago to the day that we had a conversation in this program about the very topic with former BlackRock executive Morris Pearl, who is part of the Patriotic Millionaires Leadership as well. What has changed since then?

In practical terms, in terms of taxing the rich, I don’t think much has changed. However, there are changes in the environment we live in.

The government is starting to run out of options to pay more taxes to the workers … and with the growing need for public services to cope with the effects of the pandemic … higher. But it can’t get profit from working people, from income tax and so on.

What kind of response did you get in Davos from other millionaires – and billionaires, maybe? Do you look dirty or supportive? Or both, maybe?

Both, I think. Yes, both.

Of course, the millionaires and other people I spoke to supported the message. Not everyone, obviously. You know, let’s be up front about it. There are millionaires, billionaires, who are very focused on their finances and prefer not to pay taxes.

But then there are others who do some active philanthropy. And that’s obviously part of the way to where we want to get. But there are many millionaires and billionaires who … recognize that we need to contribute more to society.

What I mean is the kind of society we live in.– Phil White, Patriotic Millionaires

Is philanthropy not enough?

No, no, no, no. Absolutely not, no.

Why not?

Because first, you never raise the same amount of money through philanthropy that you could raise through taxes. One reason is simply because not everyone participates.

But also – and I think more importantly – philanthropy effectively addresses some of the symptoms of the problems we face. So if I give some money, for example … to a homeless charity or an education trust … that will make people’s lives better for a month or two, a year or two years, or whatever.

But it won’t change the system or the foundation that caused the problem in the first place. Only the government can do that, not the rich. So we need the government to have the funds and the mandate to change things for the better. And how to get it [those] the funds are, frankly, from the rich.

I’m sure people have asked you this, maybe some millionaires have talked about it. What’s in it for you?

What I mean is the kind of society we live in.

I don’t want to live in a society where I’m a good, luxurious life locked away in a mansion watching movies with other millionaires. I want a community where I can walk out into the street [and] everyone wants to go about business… and actually have a good start in life and a chance to get it.

[I want] children … do not feel that they are disadvantaged in some way. I want a public infrastructure that works, where business is really good.

We talked yesterday about food service workers in parts of the United States and their wages. They were paid very little – in some cases as little as $2 [US] and changing hours, plus tips. When you hear stories like that, do you fear that the changes you’re pushing for won’t come?

In terms of social and economic justice, I would see a greater divide.

In general, we have seen the rich getting richer and the poor getting poorer. And what we’re seeing is the middle of the income scale … they’re getting burned.

England, where I’m from… a very advanced economy. And a third of our children live in poverty. Now, how can that be true?

Do you expect, Phil, that you will be out in the cold again in Davos, protesting with signs next year, and the year after that?

I’m afraid I will be. I am happy to say that I will be out in Davos next year celebrating. I’m afraid more pressure is still needed.

The Patriotic Millionaires Band is growing in the UK and internationally, and we will keep the pressure on. I don’t think it’s a quick win, to be honest, but I think we’ll get there.

And I think we’re going to get there for two reasons. First, as I said, the government needs money. And secondly, because we’re entering this increasingly fragmented society, where we have the haves and the have-nots living separate lives. And I don’t think that’s a good way forward, and I don’t think that’s sustainable for society.