2024-07-25 15:54:24
Finance ministers from the Group of 20 met in Rio de Janeiro, Brazil, on Thursday to discuss the idea of taxing the super-rich, a measure that would require a common tax policy but has been strongly divided among different member countries. The United States has rejected the idea.
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This is a no-go for the United States. On Thursday, July 25, Washington rejected a proposal by Brazil at the G20 summit to establish a coordinated taxation of the super-rich worldwide, calling on countries to gather in Rio de Janeiro for a meeting of finance ministers to develop a tax agreement that is “fair and progressive” tax system.
The issue will be discussed at the afternoon session, driven by Brazilian head of state Lula da Silva, who this year chairs the grouping that brings together most of the world’s major economies as well as the European Union and the African Union.
Even before the meeting, Treasury Secretary Janet Yellen confirmed in a press conference that her country sees “no need” to negotiate internationally on a tax on the largest wealth.
While affirming that “the United States strongly supports progressive taxation,” the US leader called on “each state to ensure that its tax system” is “fair and progressive.” “Tax policy is difficult to coordinate internationally,” she again defended her refusal.
The day before, Brazilian Finance Minister Fernando Haddad expressed optimism on Brazilian TV channel Globo, judging that “the idea has the support of several presidents” and that “it is possible to make a statement at this meeting” of the G20.
Brazilian President Luiz Inácio Lula da Silva on Wednesday reiterated that “some individuals control more resources than the entire country” and he intended to set a social tone for the G20 in Brazil, thus launching a global alliance against hunger and poverty.
The United States and Germany are reluctant
A study by the non-governmental organization Oxfam shows that inequality has continued to grow in recent years Posted on Thursday : The world’s richest 1% have increased their income by more than $40 trillion in a decade, but their taxes are at “historically” lows.
French economist Gabriel Zucman has estimated that billionaires should be taxed at 0.3% of their wealth. In a recent report commissioned by Brazil, he proposed a 2% tax on the wealth of the world’s roughly 3,000 billionaires.
In addition to Washington, Germany’s finance ministry dismissed the idea of a minimum wealth tax as “irrelevant” ahead of the G20, while several countries including France, Spain and South Africa support the principle.
In addition to taxes and the international economic situation, the last meeting of the Group of Twenty (G20) big financiers before the summit of heads of state and government on November 18-19, also in Rio, must also discuss on Friday the climate transition and climate change financing debt.
Arrived three texts
While the Group of 20 (G20) has been hampered by divisions between Western countries and fellow member Russia since the outbreak of the war in Ukraine, drafting a joint communique remains a challenge. The last meeting of the G20’s big financiers in Sao Paulo in February was not successful.
The solution envisaged by Brazil is to agree on three texts by Friday evening: a specific document on “international cooperation on tax issues”, including the taxation of the super-rich, accompanied by a more general final press release and finally a “separate statement by the President of Brazil” that alone mentions the geopolitical crisis.
The model has been applied this week. The Brazilian presidency issued a “statement” on Wednesday, reporting that some G20 members “shared their views on Ukraine and the war in Gaza” during discussions on the Global Alliance against Hunger and Poverty.
Some countries see the G20 as a relevant forum to discuss these issues, while others see the opposite. Jutta Urpilainen, the EU’s commissioner for international partnerships, told reporters on Wednesday that “based on my experience of previous G20 summits,” the next ministerial meeting will most likely produce a separate text. She said aiming for a single text “does not allow us to adopt anything.”
The G20 brings together most of the world’s major economies, founded in 1999. His career was initially focused on economics, but he increasingly focused on hot issues in world news.
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