G20 reaches agreement on millionaires’ tax

The world’s 20 largest economies (G20) have agreed to work together to ensure effective taxation of ultra-high-net-worth individuals, such as Advertise In a published statement.

According to the statement, the G20 will seek to work together to ensure effective taxation of high-net-worth individuals. This cooperation could include sharing best practices, encouraging discussion on tax principles, and developing mechanisms to combat abuse, including addressing potentially harmful tax practices.

Brazil’s ‘Millionaire Tax’ Proposal

The announcement is a priority for Brazil, which holds the G20 presidency this year. Brazilian Finance Minister Fernando Haddad has proposed a 2% wealth tax on wealth above $1 billion. This is estimated to generate up to $250 billion in annual income from 3,000 individuals.

While some countries support the deal, others have indicated that implementation will be difficult. “We all know that we are starting a very difficult process,” European Economic Commissioner Paolo Gentiloni said. “The first step will be to work on the exchange of information between the different countries. This is something we will discuss in the coming months and years.”

Targeting the world’s richest people, like Elon Musk.

US Treasury Secretary Janet Yellen welcomed the spirit of the statement discussions but expressed concern about new global tax policies, noting that US President Joe Biden has proposed several policies in this direction, including a “millionaire tax”. She said: “We think… it makes sense for most countries to adopt this approach to progressive taxation. We are happy to work with Brazil on this and promote these ideas in the G20.”

The proposed “billionaires tax” targets the world’s richest individuals, such as Tesla Inc.’s Elon Musk, Amazon.com Inc.’s Jeff Bezos and French luxury goods mogul Bernard Arnault. According to Forbes, these individuals have fortunes ranging from $180 billion to more than $235 billion.

According to Oxfam, the richest 1 percent have amassed $42 trillion in new wealth in the past decade. That’s about 34 times more than the bottom 50 percent of the world’s population. This has widened wealth inequality: the average wealth of the top 1 percent has increased by nearly $400,000 in real terms over the past decade, compared with just $335—an increase of less than nine cents a day—for someone in the bottom half.

Main Takeaways

The G20 agreed to work together to ensure effective taxation of high-net-worth individuals.
The agreement aims to address tax evasion and exchange information between countries.
Brazil’s proposal includes a 2 percent wealth tax on fortunes over $1 billion, which is estimated to generate up to $250 billion annually.