Brazilian Finance Minister Fernando Haddad, who chairs this year’s G20, has emphasized the need for improved international cooperation to prevent the wealthy from avoiding taxation systems. The Brazilian presidency of the G20, under President Luiz Inacio Lula da Silva, has made taxing the rich a priority, particularly in light of the global social and environmental crises facing the world.
Economist Gabriel Zucman has proposed a 2% annual tax on the wealth of the 3,000 richest individuals, which could generate approximately $250 billion in revenue. According to a report by Global Citizen, this tax is one of the potential sources of funding for investments in climate transition. French Minister of the Economy and Finance, Bruno Le Maire, and American President Joe Biden have also expressed support for taxing billionaires.
France has expressed support for an international tax targeting the wealthiest households following agreements reached on the taxation of digital giants and multinationals. More than $3,000 billion annually is needed to address global warming challenges as noted by IMF Managing Director Kristalina Georgieva. The push for fair international taxation has gained momentum with support from European countries and sets the stage for further discussions and actions to ensure a more equitable distribution of wealth.
