G20 finance ministers agree to work toward effectively taxing the super-rich
Finance ministers from leading rich and developing nations have agreed to strive toward effectively taxing the super-rich
RIO DE JANEIRO — Finance ministers from leading rich and developing nations agreed Friday to strive toward effectively taxing the super-rich, a joint ministerial declaration said.
“With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” the declaration said after the two-day meeting in Rio de Janeiro.
Brazil has made a proposal to impose a 2% minimum tax on billionaires a top priority of its presidency of the Group of 20, ahead of the Nov. 18-19 summit in Rio.
While the final declaration stops short of agreeing on a specific global tax, Brazilian Finance Minister Fernando Haddad nevertheless called it a “significant step forward.”
“We were always optimistic about this result, but it really exceeded our initial expectations,” Haddad told reporters.
Brazil's proposal to tax billionaires has divided G20 nations. France, Spain and South Africa have expressed support, while the U.S. is against.
“Tax policy is very difficult to coordinate globally, and we don’t see a need or really think it’s desirable to try to negotiate a global agreement on that,” U.S. Treasury Secretary Janet Yellen told journalists Thursday.
Governments fear the super-rich would transfer their money to tax havens if a country individually adopted such a tax, said economist Rogério Studart, a senior fellow at the Brazilian Center for International Relations think tank.
“When action is done collectively, everyone wins. When there is fragmentation, many lose,” Studart said.
The richest 1% have amassed $42 trillion in new wealth over the past
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