The Guardian view on global inequality: extreme wealth threatens democracy | Editorial

New York mayor Zohran Mamdani explains to Britain's Andy Burnham that targeting billionaires does not mean abandoning cooperation with Donald Trump. In November, Californians will decide on a one-time 5% tax on residents with assets over $1 billion. This proposed levy could generate $100 billion, which is sufficient to replace healthcare funding that was cut by Donald Trump's One Big Beautiful Bill Act.

Approximately 200 ultra-wealthy individuals would bear the brunt of this tax. However, the referendum has become a test of whether extreme wealth can buy political power to thwart a popular redistributive policy. Google co-founder Sergey Brin has pledged $100 million to oppose the tax, which represents only a small portion of the $13 billion he could potentially be taxed.

Other billionaires are also supporting his cause. The question now arises as to whether voters can impose financial burdens on the super-rich once their fortunes are so vast that they can influence the political process. This issue is of great concern to any democracy. While Brin's headquarters in Mountain View is distant from Andy Burnham's constituency in Makerfield, the British Prime Minister should heed the call from leading progressive academics, including Nobel laureate Joseph Stiglitz, who advocate for the formation of a new UN International Panel on Inequality (IPI).

This initiative stems from the G20's inaugural inequality report, which revealed that the widening gap between the rich and the poor poses a human-made crisis that is eroding democracy and social cohesion while impeding efforts to address the climate emergency.