Austrian Heiress Seeks Fair Wealth Distribution, Plans to Give Away R521-million Inheritance

In an unprecedented move that could realign perceptions of wealth and philanthropy, Austrian heiress Marlene Engelhorn embarks on a mission to distribute her substantial inheritance of 25 million euros (about R521-million) and advocate for equitable taxation. This 31-year-old descendant of Friedrich Engelhorn, founder of the BASF chemical empire, expresses her discomfort with the automatism of dynastic affluence and the lack of corresponding state taxation. Engelhorn's unconventional approach to her inheritance and public demand for higher taxes on the wealthy firmly places her on the opposite spectrum of the elite conventions exhibited at this week's Davos summit.

Amid the glaring contrast at the swanky Swiss resort, where the rich and famous vie for influence and presence, Engelhorn aligns herself with activists at the periphery of the World Economic Forum. Her initiative, Taxmenow, underscores the urgency for systemic change. It not only highlights the global wealth gap but also aligns with Oxfam's recent report on exasperating wealth disparities, as nearly five billion people fall into impoverishment.

Engelhorn's plan is both ambitious and democratic. In a move to ensure her fortune serves the greater good, she has instituted a selection process for an assembly of 50 Austrian citizens who will be compensated to devise transformative ideas on the optimal disposition of her wealth. The process includes a wide-reaching invitation to over 10,000 Austrians aged 16 and above, who will submit through a questionnaire with a chance to be selected. This innovative, inclusive approach empowers the public to contribute to welfare-oriented solutions and mirrors a proactive engagement in societal development.

The participating group is set to convene in Salzburg between March and June over a series of weekends. Should consensus on proposed ideas prove elusive, the inheritance will revert to Engelhorn. She has unequivocally stated her intention to join the broader populace in the workforce, once over 90 percent of her wealth is redistributed – a tangible shift from the place of privilege to a role within the democratic milieu, as she shared with the German daily Tagesspiegel.

The conversation on wealth inequality gains traction in Austria, where the wealth divide is stark. Vienna University of Economics and Business’s economist Emanuel List considers Engelhorn's scientifically backed initiative a cutting-edge response to the structural wealth imbalances. Notably, the top five percent in Austria commandeer a majority share of the nation’s net wealth. This uneven wealth distribution is compounded by the abolition of inheritance tax in 2008, positioning Austria as an outlier among most European Union countries.

Political parties in Austria are divided on the subject of reviving the inheritance tax. While the opposition Social Democrats (SPOe) see its reintroduction as a solution to a persistent cost-of-living crisis, the conservative People's Party (OeVP) has staunchly opposed the motion. Furthermore, with the Freedom Party (FPOe) deeming such tax proposals an affront to families and achievers, the debate is expected to intensify in the run-up to this year's general election.

Engelhorn’s pursuit is a clarion call, encouraging not just individual action, but advocating for a systemic overhaul in the face of rising inequality. As she makes headlines for her radical generosity and civic-minded approach to wealth, her story becomes a beacon in the global conversation about the distribution of wealth and societal responsibilities of the affluent.