Tax the super-rich, says a new report commissioned by Brazil for its G20 presidency
A global tax on the super-rich is proposed in a new report that Brazil commissioned for its current presidency of the leading 20 rich and developing nations
RIO DE JANEIRO — A global tax on the super-rich is proposed in a new report that Brazil commissioned for its current presidency of the leading 20 rich and developing nations.
Individuals with more than $1 billion in total assets would be required to pay the equivalent of 2% of their wealth in income tax, according to the proposal in the report by Gabriel Zucman, a French economist who teaches at the Paris School of Economics.
The report says global billionaires currently pay the equivalent of 0.3% of their wealth in taxes. It said a 2% tax would raise $200 billion to $250 billion per year globally from about 3,000 individuals — money that could fund public services such as education and healthcare as well as the fight against climate change.
“The super-rich pay proportionately less in taxes than other socioeconomic groups," Zucman told journalists, adding that the practice fuels inequality. He called a progressive tax system a “key pillar of our democratic societies,” essential for strengthening social cohesion and trust in governments.
In wealth, billionaires currently own the equivalent of 13% of the world’s GDP, up from 3% in 1987, according to the new report.
The proposed tax would target billionaires who do not already pay the equivalent of 2% of their wealth in income tax, the report said. Most global billionaires probably pay below 2% but it is difficult to be more precise, Zucman said.
New G20 member the African Union has expressed interest in the proposal, as well as Belgium, Colombia, France and Spain, he said.
The issue of inequality is a priority for
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