G20 finance ministers put taxation of the super-rich on the agenda
Published: Saturday, Jul 27th 2024, 06:50
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The G20 finance ministers have agreed in a joint declaration to work towards effective taxation of the super-rich. "While fully respecting fiscal sovereignty, we will work together to ensure that very wealthy individuals are effectively taxed," said the joint final declaration of the finance ministers of the leading industrialized and emerging economies in Rio de Janeiro on Friday (local time). "The fight against hunger, poverty, inequality and the taxation of the super-rich are on the international economic agenda and point to a more socially just and environmentally sustainable future," said Brazil's Finance Minister Fernando Haddad.
Although the final declaration does not provide for an agreement on a specific global tax, the presiding minister Haddad described it as a "significant step forward". "We consider it a victory for Brazil and the international community after several years without a single complete document whose 35 paragraphs were adopted by consensus," Haddad said.
The concept initially presented by Brazil envisaged billionaires transferring at least two percent of their wealth to their home country every year. This could lead to revenues of up to 250 billion dollars, which could be used to combat hunger and conflict, for pandemic prevention and for climate protection.
The proposal divided the G20 states. While France, Spain and South Africa, for example, expressed their support, the USA is against it. The FDP-led Federal Ministry of Finance also rejected a tax on billionaires discussed at G20 level from the outset. Development Minister Svenja Schulze (SPD), on the other hand, had shown herself to be open to the idea.
©Keystone/SDA
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