Global Tax on Super-Rich Proposed to Fund Public Services, Fight Inequality

A new report commissioned by Brazil, which currently holds the presidency of the G20, proposes a global tax on individuals with more than $1 billion in total assets. The tax would require these ultra-wealthy individuals to pay the equivalent of 2% of their wealth in income tax, raising an estimated $200 billion to $250 billion per year globally. The funds would be used to support public services such as education, healthcare, and the fight against climate change.

A new report commissioned by Brazil, which currently holds the presidency of the G20, proposes a global tax on individuals with more than $1 billion in total assets. The tax would require these ultra-wealthy individuals to pay the equivalent of 2% of their wealth in income tax, raising an estimated $200 billion to $250 billion per year globally. The funds would be used to support public services such as education, healthcare, and the fight against climate change.

Global Tax on Super-Rich Proposed to Fund Public Services, Fight Inequality

The proposal, authored by French economist Gabriel Zucman, argues that global billionaires currently pay the equivalent of only 0.3% of their wealth in taxes. A 2% tax, on the other hand, would raise significant revenue that could be used to address pressing global challenges.

According to the report, the super-rich own the equivalent of 13% of the world's GDP, up from 3% in 1987. This growing wealth inequality has fueled social unrest and undermined trust in governments.

Global Tax on Super-Rich Proposed to Fund Public Services, Fight Inequality

The proposed tax would target billionaires who do not already pay the equivalent of 2% of their wealth in income tax. Most global billionaires likely pay below this threshold, but it is difficult to be more precise due to the lack of transparency in their financial dealings.

New G20 member the African Union has expressed interest in the proposal, as well as Belgium, Colombia, France, and Spain. Brazil, as the current G20 president, has made inequality a priority along with the reduction of hunger, the promotion of sustainable development, and reforms of global governance.

Advocacy groups such as Oxfam International have praised the proposal, calling it a "sensible and serious proposal that is in every government's strategic economic interest." Oxfam estimates that countries around the world could lose up to $4.8 trillion in tax revenue over the next decade due to the use of tax havens by individuals and businesses.

The proposal faces challenges ahead. Negotiations are expected to be lengthy, and there is likely to be resistance from the super-rich who would be subject to the tax. However, the growing global inequality crisis and the need for more revenue to fund public services make this proposal timely and worthy of serious consideration.

The G20 is expected to discuss the proposal in more detail during its upcoming summit in Indonesia in November 2023. If implemented, the global tax on the super-rich could make a significant contribution to addressing the pressing challenges facing humanity today.