G20 nations agree to tax billionaires

At a recent meeting in Rio de Janeiro, G20 nations agreed to work together to ensure that the super-rich pay their taxes, though they did not reach a more substantial agreement. This decision follows a two-day meeting of finance ministers, and the topic of taxing billionaires was a major focus.

Brazilian President Luiz Inacio Lula da Silva, who leads this year’s G20, has prioritized this initiative. Lula aimed for a global minimum tax on the wealthy, but the final statement represents a compromise due to differing views among member states. The statement emphasizes a cooperative approach to tax ultra-high-net-worth individuals while respecting national tax policies.

The final declaration notes that wealth and income inequality harm economic growth and social cohesion. Brazilian Finance Minister Fernando Haddad highlighted the moral need for progressive taxation, pointing out the imbalance between taxing the poor more heavily than the rich.

The United States and Germany were skeptical of a global tax agreement for billionaires, while countries like France, Spain, South Africa, Colombia, and the African Union supported it. IMF chief Kristalina Georgieva praised the G20’s stance on “tax fairness,” acknowledging the difficult choices countries face in balancing fiscal needs with social demands.

French economist Gabriel Zucman welcomed the G20’s consensus on addressing how the rich are taxed. Nobel Prize-winning economist Joseph Stiglitz urged leaders to set minimum standards by November. Camila Jardim from Greenpeace Brazil criticized the reliance on regular taxpayers to fund climate-related costs while the super-rich evade taxes.

On the side of these discussions, US Treasury Secretary Janet Yellen and Brazilian Economy Minister Haddad announced a new partnership on climate protection. The G20, originally focused on economic issues, is now tackling broader challenges, though consensus on some topics remains elusive. The final communique from the meeting did not address specific conflicts but acknowledged general risks to the global economy.

Re-reported from the article originally published in FirstPost.