Brazil proposes global tax on super-rich in new report for G20 presidency

In a recent report commissioned by Brazil for its current presidency of the G20, a global tax targeting the super-rich has been proposed. The plan suggests that individuals with over $1 billion in assets should pay 2% of their wealth in income tax, a significant increase from the current 0.3% paid by global billionaires. This tax could generate $200 billion to $250 billion annually from around 3,000 individuals, with the funds earmarked for public services like education, healthcare, and climate change initiatives. Economist Gabriel Zucman, the report's author, highlighted the growing wealth inequality and emphasized the importance of a progressive tax system for societal cohesion and government trust. The proposal aims to address the disparity in tax contributions between the super-rich and other socioeconomic groups, with billionaires currently holding 13% of the world's GDP, up from 3% in 1987. The tax would specifically target billionaires not meeting the 2% threshold, garnering interest from countries like the African Union, Belgium, Colombia, France, and Spain. Brazil, focusing on inequality, hunger reduction, sustainable development, and global governance reforms during its G20 presidency, sees a global minimum tax on billionaires as a strategic means to advance these goals. However, officials anticipate challenging negotiations ahead, acknowledging the complexity of implementing such a tax on a global scale. The proposal has garnered support from various quarters, with stakeholders recognizing its significance in addressing economic disparities and funding critical social programs. The call for a more equitable tax system reflects a broader push for fairer wealth distribution and sustainable development practices. As discussions progress, the potential impact of this global tax on the super-rich remains a focal point in the ongoing dialogue surrounding economic policies and social welfare initiatives.