Latin America’s only millionaire on the Proud To Pay More manifesto has joined the increasing number of wealthy people calling on governments to increase taxes on assets held by the rich. 

Speaking to El Pais English, João Paulo Pacifico believes ‘replacing taxes with philanthropy is the privatisation of common well-being’. 

The outspoken millionaire, who dubs himself more of an activist than a just a high-net wealth person, fears that deepening inequalities across Latin America and the world cannot be met by philanthropy alone. For him, it is up to governments to intervene ever more and make the world’s wealthiest contribute more. 

‘Taxes are one of the ways to achieve social justice. Perhaps the most important way, but not the only one,’ Pacifico told El Pais.  

The 46-year-old is ‘critical of the concentration of wealth’, adding; 

‘For me, anyone who accumulates a lot is — as a rule — an idiot. I didn’t anticipate the repercussions that signing the letter would have. It’s very obvious to me that I have to pay more taxes. Proportionately, I gave up much more than the BASF heiress [Marlene Engelhorn]… and my money wasn’t an inheritance’. 

For Pacifico, ‘raising resources’ for social movements is his ‘way of giving up [money] in favor of a greater objective’. 

When asked whether he was from the top 1 per cent of the top 0.01 percentile, Pacifico said he ‘no idea’. 

‘I have a very privileged economic position. And I think the world’s tax system is unfair. Brazil’s system is unfair’.  

A Brazilian who earns 4,000 reais a month ($800) pays the same income tax as a Brazilian earning four million reais ($800,000). 

He added that low taxes on the rich threaten democracy. Accumulated wealth exerts influence, and often corruption. 

‘[Billionaires] pay few taxes, so they accumulate more money: they begin to control public goods that are no longer public. They get to control everything. The objective of this is to weaken the state. Real power isn’t in the hands of those we elect — the true power lies with the people who have the most money, who are hoarding more and more. And the world is moving rapidly down that path.’ 

Pacifico made his money via investments in the agricultural business and worked as a the director of a subsidiary of an investment bank. 

The Brazilian joins Marlene Engelhorn, who inherited 25 million euros from her grandmother. Instead of keeping it, she is forming up a citizens council to decide how that inheritance should be redistributed.   

The 31-year-old from Vienna has long campaigned for a just and equitable tax system in Austria.   

The Council, named “Guter Rat für Rückverteilung”, means ‘good advice for redistribution’. They will meet for six weekends from March until June.  

Marlene Engelhorn will not have any influence on the distribution. 

Shafi Musaddique is the news editor of Alliance magazine.