Gathered in Rio de Janeiro, the heads of state and government of the G20, the main forum for international economic cooperation, endorsed a proposal for progressive taxation, which calls for the effective taxation of individuals considered super-rich. The proposal is included in the final communiqué of the summit, released on the afternoon of Monday (November 18), the first day of the annual meeting.
“With full respect for tax sovereignty, we will seek to engage cooperatively to ensure that individuals with ultra-high net worth are effectively taxed. Cooperation may include the exchange of best practices, fostering discussions on tax principles, and developing anti-avoidance mechanisms, such as addressing potentially harmful tax practices. We look forward to continuing discussions on these issues within the G20 and other relevant forums, leveraging the technical contributions of international organizations, universities, and experts,” says the document, whose final content was approved by consensus.
Estimates from Brazil’s Ministry of Finance suggest that a 2% tax on the wealth of the super-rich could generate $250 billion annually, to be invested in combating inequality and financing the ecological transition. This group of ultra-rich individuals comprises about 3,000 people, whose combined assets total approximately $15 trillion — more than the GDP of most countries. However, the G20 text does not propose a specific tax rate.
The final letter of the G20 also advocates for progressive taxation, where individuals with greater resources are taxed at higher rates. This is presented as one of the “key tools to reduce internal inequalities, strengthen fiscal sustainability, promote budget consolidation, foster strong, sustainable, balanced, and inclusive growth, and facilitate the achievement of the SDGs [Sustainable Development Goals].”
Source: Agência Brasil