By AFP
July 25, 2024
Brazil's leftist president, Luiz Inacio Lula da Silva, has brought social justice issues to the forefront of G20 discussions - Copyright AFP Pablo PORCIUNCULA
Faced with growing global inequality, G20 finance ministers meeting Thursday in Rio de Janeiro will tackle the thorny issue of taxes for the super-rich, a topic that has divided member states.
It is a key priority of Brazil’s leftist president, Luiz Inacio Lula da Silva, who this year heads the grouping of the world’s major economies, the European Union and African Union, which will discuss taxing billionaires in an afternoon session.
“Some individuals control more resources than entire countries,” Lula said Wednesday at the launch of an initiative to fight world hunger, another project topping his G20 agenda.
“At the top of the pyramid, tax systems are no longer progressive, but regressive.”
Global inequality has continued to widen in recent years according to a study by the NGO Oxfam published Thursday: the richest one percent of the world have earned more than $40 trillion in a decade, but their taxation is at “historically” low rates.
French economist Gabriel Zucman, a consultant with the G20 on taxation issues, estimates that the tax rate for billionaires represents 0.3 percent of their wealth.
In a recent report commissioned by the G20, he called for super-wealthy individuals to be taxed the equivalent of two percent of their fortune.
However, not all G20 countries are keen on the idea.
Brazil's leftist president, Luiz Inacio Lula da Silva, has brought social justice issues to the forefront of G20 discussions - Copyright AFP Pablo PORCIUNCULA
Faced with growing global inequality, G20 finance ministers meeting Thursday in Rio de Janeiro will tackle the thorny issue of taxes for the super-rich, a topic that has divided member states.
It is a key priority of Brazil’s leftist president, Luiz Inacio Lula da Silva, who this year heads the grouping of the world’s major economies, the European Union and African Union, which will discuss taxing billionaires in an afternoon session.
“Some individuals control more resources than entire countries,” Lula said Wednesday at the launch of an initiative to fight world hunger, another project topping his G20 agenda.
“At the top of the pyramid, tax systems are no longer progressive, but regressive.”
Global inequality has continued to widen in recent years according to a study by the NGO Oxfam published Thursday: the richest one percent of the world have earned more than $40 trillion in a decade, but their taxation is at “historically” low rates.
French economist Gabriel Zucman, a consultant with the G20 on taxation issues, estimates that the tax rate for billionaires represents 0.3 percent of their wealth.
In a recent report commissioned by the G20, he called for super-wealthy individuals to be taxed the equivalent of two percent of their fortune.
However, not all G20 countries are keen on the idea.
– ‘Irrelevant’ –
US Treasury Secretary Janet Yellen opposed international negotiations on the subject during a G7 finance meeting held in May in Italy.
Germany’s finance ministry considers the idea of a minimum wealth tax to be “irrelevant.”
The initiative is backed by France, Spain, South Africa, Colombia and the African Union.
In addition to international taxation, G20 finance ministers will also discuss the global economic situation in their last meeting before a summit on November 18 and 19.
On Friday, the ministers will tackle the financing of the climate transition and debt.
Founded in 1999, the Group of 20 assembles 19 of the world’s largest economic powers, as well as the European Union and the African Union.
The organization was originally focused on global economic issues but has increasingly taken on other pressing challenges — even though member states do not always agree on what should be on the agenda.
Brazil’s presidency said in a statement that some members of the G20 considered that crises such as the conflicts in Ukraine and Gaza “have an impact on the global economy and should be addressed at the G20, while others believe that the G20 is not the place to discuss these issues.”
Divisions within the G20, of which Russia is also a member, has made drafting a joint communique at the outcome of meetings a challenge.
The last meeting of finance ministers in Sao Paulo failed to issue such a statement.
Brazil hopes to publish three texts after the meeting, said Tatiana Rosito, a senior official at the economy ministry.
Aside from a joint final communique, this would include a document on “international cooperation in tax matters” and a separate communique from Brazil on geopolitical crises.
“It is likely, based on my experience of previous G20s,” that future ministerial-level meetings will publish separate statements in this manner, European Commissioner for International Partnerships, Jutta Urpilainen, told reporters Wednesday.
Aiming for a single text “would not allow us to adopt anything,” she said.
US Treasury Secretary Janet Yellen opposed international negotiations on the subject during a G7 finance meeting held in May in Italy.
Germany’s finance ministry considers the idea of a minimum wealth tax to be “irrelevant.”
The initiative is backed by France, Spain, South Africa, Colombia and the African Union.
In addition to international taxation, G20 finance ministers will also discuss the global economic situation in their last meeting before a summit on November 18 and 19.
On Friday, the ministers will tackle the financing of the climate transition and debt.
Founded in 1999, the Group of 20 assembles 19 of the world’s largest economic powers, as well as the European Union and the African Union.
The organization was originally focused on global economic issues but has increasingly taken on other pressing challenges — even though member states do not always agree on what should be on the agenda.
Brazil’s presidency said in a statement that some members of the G20 considered that crises such as the conflicts in Ukraine and Gaza “have an impact on the global economy and should be addressed at the G20, while others believe that the G20 is not the place to discuss these issues.”
Divisions within the G20, of which Russia is also a member, has made drafting a joint communique at the outcome of meetings a challenge.
The last meeting of finance ministers in Sao Paulo failed to issue such a statement.
Brazil hopes to publish three texts after the meeting, said Tatiana Rosito, a senior official at the economy ministry.
Aside from a joint final communique, this would include a document on “international cooperation in tax matters” and a separate communique from Brazil on geopolitical crises.
“It is likely, based on my experience of previous G20s,” that future ministerial-level meetings will publish separate statements in this manner, European Commissioner for International Partnerships, Jutta Urpilainen, told reporters Wednesday.
Aiming for a single text “would not allow us to adopt anything,” she said.
World’s richest 1% gained $40 tn in a decade: Oxfam
ByAFP
PublishedJuly 24, 2024
The world's richest one percent increased their fortunes by a total of $42 trillion over the past decade, Oxfam says - Copyright AFP/File ADEK BERRY
The world’s richest one percent increased their fortunes by a total of $42 trillion over the past decade, Oxfam said Thursday, ahead of a G20 summit in Brazil where taxing the super-rich tops the agenda.
Despite this windfall, taxes on the rich had plummeted to “historic lows”, the NGO added, warning of “obscene levels” of inequality with the rest of the world “left to scrap for crumbs”.
Brazil has made international cooperation on taxing the super-rich a priority of its presidency of the G20, a group of countries representing 80 percent of the world’s GDP.
At this week’s summit in Rio de Janeiro, the group’s finance ministers are expected to make progress on ways to raise levies on the ultra-wealthy and prevent billionaires from dodging tax systems.
The initiative involves determining methodologies to tax billionaires and other high-income earners.
The proposal is due to be fiercely debated at the summit on Thursday and Friday, with France, Spain, South Africa, Colombia and the African Union in favour, but the United States firmly against.
Oxfam dubbed it a “real litmus test for G20 governments”, urging them to implement an annual net wealth tax of at least eight percent on the “extreme wealth” of the super-rich.
“Momentum to increase taxes on the super-rich is undeniable,” said Oxfam International’s head of inequality policy, Max Lawson.
“Do they have the political will to strike a global standard that puts the needs of the many before the greed of an elite few?”
Oxfam said that the $42 trillion figure was nearly 36 times more than the wealth accumulated by the poorer half of the world’s population.
Despite this, billionaires “have been paying a tax rate equivalent to less than 0.5 percent of their wealth” across the globe, the NGO said.
Nearly four out of five of the world’s billionaires call a G20 nation home, Oxfam noted.
ByAFP
PublishedJuly 24, 2024
The world's richest one percent increased their fortunes by a total of $42 trillion over the past decade, Oxfam says - Copyright AFP/File ADEK BERRY
The world’s richest one percent increased their fortunes by a total of $42 trillion over the past decade, Oxfam said Thursday, ahead of a G20 summit in Brazil where taxing the super-rich tops the agenda.
Despite this windfall, taxes on the rich had plummeted to “historic lows”, the NGO added, warning of “obscene levels” of inequality with the rest of the world “left to scrap for crumbs”.
Brazil has made international cooperation on taxing the super-rich a priority of its presidency of the G20, a group of countries representing 80 percent of the world’s GDP.
At this week’s summit in Rio de Janeiro, the group’s finance ministers are expected to make progress on ways to raise levies on the ultra-wealthy and prevent billionaires from dodging tax systems.
The initiative involves determining methodologies to tax billionaires and other high-income earners.
The proposal is due to be fiercely debated at the summit on Thursday and Friday, with France, Spain, South Africa, Colombia and the African Union in favour, but the United States firmly against.
Oxfam dubbed it a “real litmus test for G20 governments”, urging them to implement an annual net wealth tax of at least eight percent on the “extreme wealth” of the super-rich.
“Momentum to increase taxes on the super-rich is undeniable,” said Oxfam International’s head of inequality policy, Max Lawson.
“Do they have the political will to strike a global standard that puts the needs of the many before the greed of an elite few?”
Oxfam said that the $42 trillion figure was nearly 36 times more than the wealth accumulated by the poorer half of the world’s population.
Despite this, billionaires “have been paying a tax rate equivalent to less than 0.5 percent of their wealth” across the globe, the NGO said.
Nearly four out of five of the world’s billionaires call a G20 nation home, Oxfam noted.
US sees no need for global deal to tax super-rich: Yellen
Rio de Janeiro (AFP) – The United States sees no need to negotiate an international agreement on taxing the super-wealthy, Treasury Secretary Janet Yellen said Thursday on the sideline of a G20 finance ministers' meeting.
Issued on: 25/07/2024 -
Rio de Janeiro (AFP) – The United States sees no need to negotiate an international agreement on taxing the super-wealthy, Treasury Secretary Janet Yellen said Thursday on the sideline of a G20 finance ministers' meeting.
Issued on: 25/07/2024 -
Yellen said the US preferred for individual countries to tackle the issue of taxing the super-rich OR NOT
© Pablo PORCIUNCULA / AFP
The topic is a key priority of Brazil's leftist president, Luiz Inacio Lula da Silva, who this year heads the grouping of the world's major economies, the European Union and African Union.
Yellen's remarks highlighted the divisions among G20 members on the issue.
"Tax policy is very difficult to coordinate globally," Yellen told a press conference in Rio de Janeiro.
"We don't see a need or really think it's desirable to try to negotiate a global agreement on that. We think that all countries should make sure that their taxation systems are fair and progressive."
Yellen said Washington was "strongly supportive of progressive taxation, and making sure that very wealthy high income individuals pay their fair share."
She highlighted policies proposed by US President Joe Biden, such as a billionaires' tax, which she described as "a very worthwhile initiative."
"It makes sense for most countries to take this approach of progressive taxation."
Brazil's search for a global agreement on taxing the richest of the rich is backed by France, Spain, South Africa, Colombia and the African Union.
The meeting of finance ministers in Rio opened with a session on the global economy, as inflation slows in many parts of the world after a surge fuelled by the war in Ukraine and other factors.
On Friday, the ministers will tackle the financing of the climate transition and debt in their last meeting before a G20 summit on November 18 and 19.
© 2024 AFP
The topic is a key priority of Brazil's leftist president, Luiz Inacio Lula da Silva, who this year heads the grouping of the world's major economies, the European Union and African Union.
Yellen's remarks highlighted the divisions among G20 members on the issue.
"Tax policy is very difficult to coordinate globally," Yellen told a press conference in Rio de Janeiro.
"We don't see a need or really think it's desirable to try to negotiate a global agreement on that. We think that all countries should make sure that their taxation systems are fair and progressive."
Yellen said Washington was "strongly supportive of progressive taxation, and making sure that very wealthy high income individuals pay their fair share."
She highlighted policies proposed by US President Joe Biden, such as a billionaires' tax, which she described as "a very worthwhile initiative."
"It makes sense for most countries to take this approach of progressive taxation."
Brazil's search for a global agreement on taxing the richest of the rich is backed by France, Spain, South Africa, Colombia and the African Union.
The meeting of finance ministers in Rio opened with a session on the global economy, as inflation slows in many parts of the world after a surge fuelled by the war in Ukraine and other factors.
On Friday, the ministers will tackle the financing of the climate transition and debt in their last meeting before a G20 summit on November 18 and 19.
© 2024 AFP
No comments:
Post a Comment