Progressive taxation for financing for gender-transformative public services

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In the intricate web of global governance, fiscal policies often play a pivotal role in shaping societal structures and fostering justice. Bhumika Muchhala, in her compelling paper on A Feminist Social Contract rooted in Fiscal Justice, called for a united effort on the international stage to combat illicit financial flows hindering the redistribution of resources crucial for achieving Sustainable Development Goals (SDGs) and addressing inequalities, especially gender disparities.

In recent years, we’ve witnessed a concerning regression in global governance and macroeconomic policies, plunging us into an era of exacerbated austerity. Despite the hard-earned lessons from past devastations, calls for dismantling tax havens and privatizing essential services persist. As we approach 2024, a post-Covid world, the focus should shift to prioritizing people’s well-being through robust public services, learning from the harsh realities faced by countries like Malawi.

Malawi, losing over USD $60 million annually to multinational corporations and elites diverting funds to tax havens, exemplifies the urgent need for progressive taxation measures. ActionAid UK’s report on the Feminist Wellbeing Economy unveils the staggering 30% loss of the country’s health budget due to such financial maneuvers. The call for states to reclaim sovereignty involves dismantling tax havens and promoting progressive taxation, including wealth taxes, corporation taxes, and capital gains taxes.

Historically, taxation systems have neglected a gender-sensitive lens, perpetuating gender inequalities. Women, particularly those in low-income households, bear a disproportionate tax burden, hindering their full participation in society. Fair taxation should extend beyond revenue generation to redistribute wealth and resources, recognizing and rectifying historical injustices.

The concept of gender-transformative care emerges as a crucial aspect of fair taxation, encompassing services like healthcare, education, maternal support, and childcare. Achieving gender equality requires dismantling barriers through economic empowerment and social well-being. The global pursuit of justice and equality now hinges on fair taxation, shining a spotlight on the intersectionality of taxation and gender-transformative care.

Closing the gender pay gap is another vital step toward fair taxation. Equal pay not only promotes economic justice but also allocates more financial resources for transformative care initiatives. Governments must actively engage with communities, especially women and marginalized groups, to formulate inclusive taxation policies grounded in lived experiences.

As we rally for tax justice during the Global Days of Action, it’s imperative to recognize fair taxation’s pivotal role in advancing gender-transformative care. By reimagining taxation as a tool for social justice, embracing progressive models, closing the gender pay gap, and actively engaging with communities, we can build a more equitable world where transformative care is a fundamental right for all. It’s time to tax fairly for a gender-transformative future.

In the backdrop of our daily lives, taxes weave the fabric that sustains essential public services. From education and healthcare to infrastructure and security, our contributions to the government fund the very foundations of societal well-being. As we reflect on the significance of taxes during the Global Days of Action, let’s acknowledge the integral role they play in shaping a fair and equitable future for all.

Jessica Mandanda, Feminist Macroeconomic Alliance Malawi (FEAM)

Written by Jessica Mandanda, as part of the Global Days of Action for Tax Justice