Finance ministers from the Group of 20 (G20) nations met in Rio de Janeiro, Brazil on July 25-26, 20XX for a two-day discussion on various economic issues. One of the main topics under consideration was a global tax on billionaires, which is a priority for Brazil during its presidency of the G20. According to reports, individuals with over $1 billion in assets would be required to pay an income tax equivalent to 2% of their wealth.
Brazilian Finance Minister Fernando Haddad told reporters that the final declaration from the meeting will mention a proposal for taxing the super-rich but did not provide further details on its wording or whether it will specifically reference the 2% proposition. The Brazilian Ministry of Finance had previously stated that France, Spain, and South Africa, which will chair the G20 in 2025, had expressed support for this initiative.
However, US Treasury Secretary Janet Yellen reiterated her stance against negotiating a global agreement on taxing the ultra-rich. She emphasized that tax policy is difficult to coordinate globally and that there is no need or desire to do so. Despite this opposition, Haddad expressed optimism about the progress made during the meeting.
A report from French economist Gabriel Zucman estimated that a global tax on billionaires could raise between $200-$250 billion per year. This revenue could potentially be used to fund public services such as education and health care, as well as efforts to combat climate change.
The richest 1% of the world's population has amassed over $42 trillion in new wealth over the past decade, nearly 36 times more than the entire bottom 50% of the world's population. This growing wealth gap highlights the need for a fairer tax system that ensures that those with significant resources contribute their fair share to society.
The G20 finance ministers' discussions on this issue come as part of a broader effort to address economic inequality and promote social cohesion.
