The leaders of G20 will discuss on Monday and Tuesday at the Rio de Janeiro Summit the adoption of a global tax on the super-rich that countries like the US resist, so what has been agreed so far is a vague mention of the rich contributing to the fair payment of taxes.
The inclusion of the issue on the agenda of the world’s largest economies and the possible start of negotiations to implement it, which could last for years, are considered a success by Brazil, temporary president of the forum and author of the proposal. According to the Brazilian initiative, if the nearly 3,300 billionaires in the world pay the equivalent of 2% of their wealth in taxes It is possible to raise between 200,000 and 250,000 million dollars annually to finance projects to combat poverty, hunger and climate change.
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Despite the ambition of the proposal, the issue only was cited superficially in the declaration of the last meeting held by the economic ministers of the twenty largest economies in the world, last July in Rio de Janeiro. “With full respect for tax sovereignty, we will seek to cooperate to ensure that ultra-high net worth individuals pay taxes effectively”ensures a declaration on international tax cooperation considered historic by Brazil.
The document highlighted the importance “that all taxpayers, including ultra-high net worth individuals, contribute their fair share of taxes”. Without consensus among the economy ministers, the creation of the tax now depends on a political decision by the heads of state, but an agreement is difficult in the face of resistance from countries like the United States and Germany. Among the countries that have declared their support are France, Spain and South Africawho will assume the temporary presidency of the forum next week in Brazil’s place. The Brazilian Minister of Finance, Fernando Haddad, says he hopes that the negotiations he held on a recent trip to Washington for meetings with authorities from several countries can be reflected in the presidential meeting with more support.
For the head of the Brazilian delegation to the G20, Mauricio Lyrio, regardless of whether or not it is approved in Rio, the mere fact that heads of state consider progressive taxation to be an important tool to reduce inequalities It’s already a success. “The issue was included in the declaration of ministers by consensus so it will be addressed by the presidents, and we consider that it was a great advance because there was no expectation that all countries would approve its mention in the declaration”Lyrio stated in a press conference last week. The diplomat said that the important thing was to start the discussion, since the process of transforming that declaration into a convention or treaty is very complicated and can take decades.
In their statement, the ministers said they hope “continue discussing these issues at the G20 and in other relevant forums, counting on technical contributions from international organizations, academics and relevant experts”. According to Haddad, Brazil has already started talks with a UN working group on fair taxation and with members of the OECD on possible ways of implementing the tax, as well as with South Africa, to continue the debate in the G20 during his presidency of the group.
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The Minister of Economy of Spain, Carlos Body, who participated in the July event, asked that efforts continue with the preparation of a “road map” for the future implementation of the tax. For Body, the first thing needed is a database on income and the wealth assets of individuals considered ultra-rich internationally.
EFE
