A global tax on the ultra-rich? The idea is taking shape

A global tax on the ultra-rich? The idea is taking shape
A global tax on the ultra-rich? The idea is taking shape

« All over the world, the ultra-rich have very low tax rates. This fuels inequality », argues French economist Gabriel Zucman during the presentation this Tuesday, June 25, of a report on the conditions of application of an international tax on the most fortunate. Brazil, which defends the initiative, has made it one of the strong points of its presidency of the G20: this report must be officially presented at the meeting of finance ministers and central bank governors of the G20 in July.

The implementation of this tax “ is technically feasible”, defends the economist, professor at the Paris School of Economics and the University of Berkeley in California. His report uses the example of the coordinated minimum tax on multinationals to demonstrate that this tax could be applied even if not all countries adopt it. It is enough to have mechanisms “tax collector of last resort”, indicates the report which proves that tax systems fail to effectively tax very wealthy people. His study shows that the wealth of the richest 0.0001% of households has increased from around 3% of global GDP in 1987 to 14% today.

An increasingly popular idea

Against this injustice, the Zucman report proposes creating a tax on individuals with more than a billion dollars, equal to 2% of their wealth. Such a tax would affect around 3,000 taxpayers and would bring in between 200 and 250 billion dollars per year worldwide, according to its calculations. “ This is a sensible and serious proposal that is in the strategic economic interest of every government.”estimates Amitabh Behar, executive director of the NGO group Oxfam International.

« 10 years ago, such a proposal was considered utopian but it is increasingly popular », underlines Gabriel Zucman. People are in favor of it to fight against the global social and environmental crisis. If the United States is opposed to it, the measure is supported, officially, by France but also by South Africa, Spain and even Belgium, assures the economist.

Furthermore, in France, as part of the legislative elections, the New Popular Front is proposing increased taxation of “ richest » at the European level, without quantifying it for the moment.

-

-

PREV “Increasing the minimum wage is not effective in combating poverty among people in employment”
NEXT [Bon plan] 5 Clearance Electric Cars With Huge Discounts