France called on Wednesday to “accelerate” international negotiations at the G20 in order to impose minimum taxation on the richest, echoing the call of numerous NGOs and left-wing activists in recent years.
“ Tax the rich »: from the provocative dress of American Democrat Alexandria Ocasio-Cortez at the Met Gala in New York in 2021 to the shock action of Attac activists on the facade of the future Louis Vuitton luxury hotel on the Champs-Élysées last Saturday , the expression has established itself in left-wing circles as one of the solutions to remedy the increase in inequalities.
Politically, however, increased taxation of the wealthiest has been hampered for years by the absence of international ambition and the difficulties of granting very different tax systems.
But the French Minister of the Economy, Bruno Le Maire, affirmed on Wednesday: “We are fully committed to accelerating the implementation process at the international level, at the OECD level, at the G20 level and, I I hope, at the level of European countries, of minimal taxation of individuals,” he said on behalf of the French government, on the sidelines of a G20 of Finance Ministers in Brazil.
“Today, you have the possibility, for the richest people, to avoid paying the same amount of income tax as other people who are less rich,” he continued, saying he wanted “avoid this tax optimization”.
Corporate taxation experienced a small revolution at the end of 2021, when nearly 140 States agreed on minimum taxation of multinationals under the aegis of the OECD, consisting of two pillars, the first aimed at a better distribution of taxation. digital giants and the second has a minimum tax of 15% on companies.
“Third pillar”
The international community now needs a “third pillar”, said Bruno Le Maire on Wednesday, referring to minimum taxation of the income of the richest, affirming that “France will be at the forefront on the subject”.
This speech comes on the eve of a presentation by the French economist specializing in inequalities and tax havens, Gabriel Zucman, of his recommendations for minimum taxation of the wealth of billionaires before the G20 Finance Ministers, meeting in São Paulo under Brazilian presidency.
The taxation of the income and wealth of the richest comes up at very regular intervals in the debates, in particular since the fortunes of billionaires have soared thanks to the pandemic and the explosion in stock prices, especially of the giants of the technology sector.
We are fully committed to accelerating the process of establishing at the international level, at the OECD level, at the G20 level and, I hope, at the level of European countries, a minimum taxation of individuals
The founder of the world’s number one luxury brand, LVMH, Bernard Arnault, is today the richest man in the world with assets estimated at $230 billion, ahead of Elon Musk and his $210 billion, according to the index in real time from Forbes, which is largely based on the stock prices of companies in which billionaires are shareholders.
At the same time, the richest 1% in G20 countries have seen tax rates applicable to their income fall by almost a third in recent decades, the NGO Oxfam estimated in a study published Tuesday.
Some states here and there are considering taxing the wealth or income of the richest. But an international agreement on an increase in taxes on the wealthiest still seems out of reach: Argentina imposed an exceptional contribution on the wealth of the wealthiest in 2020 and Germany debated the subject during the last legislative elections.
American President Joe Biden regularly repeats his wish to increase taxation on the wealthiest, without reaching a consensus with the Republican opposition.
A group called the “patriotic millionaires” and bringing together wealthy people across the planet regularly calls for an increase in their tax level, which they consider too low.