G20 proposes global tax on the richest, despite US opposition
According to AFP on June 25, a report from the Group of Twenty recommended imposing a minimum global tax on the richest.
In a report commissioned by the G20, economist Gabriel Zucman said rich countries were failing to tax billionaires and that a minimum global tax on the wealthy was necessary.
At the G20, Brazil, France, Spain and South Africa have backed the idea of a global tax on the rich. However, the United States has voiced opposition.
The report was released on the 25th at the request of Brazil, the rotating chair of the G20. In a media interview, Zucman claimed that "the very wealthy enjoy huge tax benefits and pay much less tax than all other social classes."
The report estimates that billionaires currently pay only 0.3% of their wealth in taxes each year. Their wealth has grown rapidly. The wealth owned by the richest 0.0001% of households has risen from 3% of global GDP in 1987 to nearly 14% today.
"Few would agree that the wealthiest taxpayers, those who have benefited most from globalization, should be entitled to pay less tax than teachers and firefighters," Zucman said.
The report recommends a 2% wealth tax on the world's approximately 3,000 billionaires, which could bring in $200 billion to $250 billion in revenue each year.
