The idea of creating a minimum tax on the wealthy did not meet with consensus, but a compromise was found to encourage them to tax them more.
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The topic dominated a two-day meeting. The G20 countries, meeting in Brazil, in Rio de Janeiro, committed on Friday, July 26, to “cooperate” for the ultra-rich to be taxed more. This meeting of the finance ministers of the group, formed by the 19 largest world economies, the European Union and the African Union, was to prepare the summit between heads of state and government of the G20 scheduled for November 18 and 19, also in Rio.
Pushed by Brazil’s left-wing President Luiz Inacio Lula da Silva, who is leading the G20 this year, the idea of creating a minimum tax on the largest fortunes has not met with consensus, but a compromise has emerged to encourage everyone to tax them more. “In full respect of fiscal sovereignty, we will endeavour to cooperate to ensure that very wealthy individuals are effectively taxed”is it stated in a statement on the “international tax cooperation” published at the end of the work.
The text emphasizes that “inequalities in wealth and income undermine economic growth and social cohesion, and exacerbate social vulnerabilities.” He also advocates “effective, fair and progressive tax policies”.
Author of a report on the subject at the request of Brazil, the French economist Gabriel Zucman was pleased that “For the first time in history, G20 countries agree that the way we tax the super-rich needs to change”The statement released on Friday discusses the exchange of best practices and the design of mechanisms to combat tax evasion, in order to launch international cooperation in tax matters.
“It’s time to go further now”reacted the American Nobel Prize winner in economics Joseph Stiglitz, urging the heads of state and government to give by November a mandate for coordinated minimum standards. For the NGO Greenpeace, which described Friday’s consensus as“historical”, “This is an important step for the G20, which recognizes for the first time the need to tax the super-rich.”.