Global Push for Billionaire Wealth Taxation Gains Momentum
- From Xhulia Likaj
- Reading duration 2 min
Brazil has taken a significant step within the G20 to advocate for a more comprehensive taxation system targeting the wealth of the world's billionaires. Brazil's proposal, which has attracted attention and support, seeks to address the widening gap between the ultra-rich and the rest of society. The plan involves implementing a global minimum tax specifically aimed world´s 3000 billionaires.
The proposal for a tax on billionaire wealth was presented by renowned economist Gabriel Zucman and supported by Brazilian Finance Minister Fernando Haddad. A large group of supporters, including economists and political decision-makers, is giving the proposal new momentum. They argue that the current global tax framework disproportionately favors the wealthy and allows them to exploit legal loopholes to minimize their tax liability. With an income tax on billionaires equivalent of at least 2 per cent of their wealth, a tax revenue of around $250 billion worldwide could be generated, says the French economist.
Reports indicate that the wealth of billionaires has reached unprecedented levels, exacerbating inequality. Brazil's efforts to garner support for billionaire wealth taxation have received varied responses internationally. While some countries have expressed solidarity, others remain cautious due to concerns about economic implications and resistance from vested interests. Nevertheless, Brazil's leadership within the G20 signals a potential shift towards addressing systemic inequities.