Economic conditions & trends

Study: International Tax on Rich Could Net $250B Annually

JUN 26 2024·Updated JUN 28 2024

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The Facts

A study commissioned by the government of Brazil has proposed a global tax on the ultra-wealthy, claiming this would be both "technically feasible" and "economically beneficial."
Common Dreams
The study, conducted by French economist Gabriel Zucman, says such a levy on the world’s 3K billionaires could rake in up to $250B in revenue annually.
guardian
Currently, these 3K pay some 0.3% of their wealth as tax, the report claims. The extra revenue could reportedly help in education, healthcare, climate change efforts, and other areas.
ABC News
The study targets those with over $1B in assets, seeking a minimum global tax of 2% on such wealth, except on those who already pay at that rate.
www.ft.com
Published on Tuesday, the study is a key element of Brazil's G20 presidency, with it likely to be discussed by the group's finance ministers in Rio de Janeiro in July.
Bloomberg.com
Five G20 members — Spain, Colombia, Belgium, France, and the African Union — have reportedly voiced support for the proposal.
Voice of America

Sources Split

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The Spin

Left narrative

The ultrawealthy are exceptionally adept at evading taxes. Earning from investments, and not salaries, lets them reinvest profits and borrow against their assets tax-free. The proposed global minimum tax on billionaires could both tackle growing inequality and ensure fairer tax contributions.

nytimes

Right narrative

A global wealth tax on billionaires would be counterproductive. It would deplete their savings and discourage investments crucial for economic growth, hindering long-term economic stability. Managing and enforcing such a tax would also strain existing systems.

Tax Notes