Janet Yellen rejects global wealth tax for billionaires

Brazil is leading the Group of 20 major economies this year. They want the group to agree on a global tax for the ultra-rich. Brazil has a big population and thinks a worldwide wealth tax will stop billionaires from hiding money in tax havens. Brazil, France, Spain, Germany, and South Africa suggest that billionaires should pay 2% of their wealth in taxes every year. They believe this will reduce the wealth gap and let governments spend more on social programs. However, the US, led by Janet Yellen, disagrees with this idea. They don't want a global tax on billionaires. The US already taxes its rich citizens who live abroad. Even if they move to a low-tax place, they still have to pay US taxes. The White House in the US proposed a different plan. They want Americans worth over $100 million to pay a 25% tax on all their earnings, including investments. A study showed that the richest 400 households in America paid an average tax rate of 23%. The top 1% paid 42.3% of federal income taxes. The top 5% paid 65.6% of all income taxes in 2021. Treasury Secretary Janet Yellen is against a global wealth tax on billionaires. She will discuss this with finance ministers from the Group of Seven. The US has the most billionaires in the world. Brazil and other countries want a global tax on billionaires like the one for corporations. The White House also proposed a 25% minimum tax for the richest Americans. President Biden wants to raise the corporate tax rate from 21% to 28%. Some Democrats want to tax the unrealized gains of the wealthiest people. Brazil is urging the Group of 20 to agree on a plan to tax the ultra-rich who can move their money to low-tax places. The goal is to have a global minimum tax, similar to what many countries agreed on for corporations in 2021.