FOUR G20 COUNTRIES PROPOSE TAXING 3,000 BILLIONAIRES WORLDWIDE AT 2%

Sun 28 April 2024:

Ministers from four leading economies have penned an article, suggesting levying a minimum two per cent tax on the world’s 3,000 billionaires to fight poverty and inequality. Brazil, Germany, South Africa and Spain have called on the global community to join their effort to collect enough funds to deal with the economic shocks of the pandemic and the climate crisis.

“It is time that the international community gets serious about tackling inequality and financing global public goods,” the ministers said in an article.

“One of the key instruments that governments have for promoting more equality is tax policy. Not only does it have the potential to increase the fiscal space governments have to invest in social protection, education and climate protection. Designed in a progressive way, it also ensures that everyone in society contributes to the common good in line with their ability to pay. A fair share contribution enhances social welfare,” they write.

Brazil spearheading the initiative

Brazil, who is chairing the Group of 20 (G20) bloc this year, is leading the effort to put a billionaire tax agenda on the meeting of G20 ministers slated to be held in June.

The details of the agenda are being shaped by the French economist, Daniel Zucman.

Which nations have supported the plan?

Apart from the four nations, France has tendered support to the initiative. Apart from that, Brazil is encouraged by the fact that USA’s Biden administration has not opposed the plan. It remains to be seen whether the Donald Trump administration if he gets elected, would change the course in favour of billionaires.

According to Zucman, “Billionaires have the lowest effective tax rate of any social group. Having people with the highest ability to pay tax paying the least – I don’t think anybody supports that.”

The rising wealth of billionaires

Studies have shown that the wealth of billionaires has grown manifold over the last years as the world endured massive economic shocks of the pandemic and climate change.

According to Oxfam, the billionaires became 34 per cent wealthier after the Covid pandemic ($3.3 trillion richer). On the other hand, a report by the World Bank showed the pandemic has halted the reduction in poverty worldwide.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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