Historic move at the G20 Summit

Along with the climate crisis, clean energy transition, poverty alleviation, banking system reform, etc., taxing the super-rich is one of the important topics at the G20 Summit in Rio de Janeiro, Brazil.

As part of its 2024 G20 presidency, Brazil has proposed a minimum 2% annual tax on the world's 3,000 richest people with assets exceeding $1 billion. (Source: Shutterstock)

The super-rich are getting richer fast. According to statistics, by the end of 2023, the number of members of the world's super-rich club, which is a gathering place for individuals with assets of at least $30 million, has increased by 28% in just seven years. The wealth of the richest 1% of the planet has also increased by $42,000 billion in the past decade, nearly 36 times the total wealth of the poorest half of the world's population.

But paradoxically, the super-rich pay much less in taxes than ordinary people. Their wealth is virtually untaxed, with effective tax rates ranging from 0% to 0.5%. In fact, for every dollar of tax collected by billionaires, less than 8 cents is in property taxes.

In addition, many billionaires seek to exploit loopholes in the tax system or transfer assets to countries with lower tax rates to increase profits. Such actions are depriving countries of much-needed revenue, especially in these difficult economic times.

As part of its 2024 G20 presidency, Brazil has proposed a minimum 2% annual tax on the world’s 3,000 richest people with assets exceeding $1 billion. The estimated $200-250 billion a year in revenue would help address issues such as education , healthcare, and climate change.

Home to nearly 80% of the world's billionaires, the G20 will have a say in how the super-rich are taxed. If approved in Rio de Janeiro, the initiative would be a historic step in reducing inequality in development around the world.

Source: https://baoquocte.vn/buoc-di-lich-su-tai-hoi-nghi-thuong-dinh-g20-293730.html