The G20, a group of countries that represent 80 percent of the World’s GDP during their convention a fortnight ago raised instrumental issues about finance as they discussed ways with which the taxing system can be effective amongst the world’s richest. This comes amid a revelation by a study that the world’s richest one percent were paying the lowest taxes historically hence a rise in inequality levels.
Brazil, in its current role as chair of the G20, with the support of countries like France, Spain, Colombia, and the African Union was outspoken in favor of new global measures to tax billionaires. They faced opposition from US Finance Minister Janet Yellen and her German counterpart Christian Lindner who have been critical about the efficacy of a global wealth tax – despite a G20 commissioned report that demonstrated how to levy over $680 billion per year from the super-rich.
According an NGO-Oxfam, the world’s richest one percent has gained an increase of up to $42 trillion over the past decade. These huge figures showed the essence of taxing the super-rich as the discussions at G20 prioritized the move and sought support amongst its members for the taxation measures.
Alia Kajee, Global Campaign Manager at 350.org, pointed out that this was a crucial moment to discuss matters of finance since G20 countries represent the overwhelming majority of global GDP, not to mention global emissions. Adding that the implementation of a wealth tax on the super-rich in these countries would significantly drive forward the transition to renewable energy.
As the G20 meetings concluded, the leaders endorsed Brazil’s proposal for a global tax on individuals with a net worth of over $1 billion, pending approval by Heads of State at the G20 Leaders’ Summit this November.
While the statement falls short of mentioning Brazil’s proposition for a 2% tax on the ultra-wealthy, it is a major step forward, reflecting the growing momentum and public support for a global tax on billionaires to tackle poverty and the climate crisis.
The discussions revolving around finance have proved quite cumbersome to deal with regarding the diverse approaches that member states have globally. Evidenced by the hurdles earlier at Bonn meetings and followed by at G20 during the taxing of the rich agenda, where Brazil, France, Spain, South Africa, Colombia, and the African Union were in favor of the move as the United States held a contrary view.
According to Oxfam International’s head of inequality policy, Max Lawson, the momentum to increase taxes on the super-rich is undeniable since the $42 trillion figure recorded was nearly 36 times more than the wealth accumulated by the poorer half of the world’s population.
“Despite the data showing how much has been gained, the billionaires “have been paying a tax rate equivalent to less than 0.5 percent of their wealth” across the globe. It’s important to note that nearly four out of five of the world’s billionaires call a G20 nation home. 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?” added Lawson.
Public polling shows that more than two-thirds of people across seventeen G20 countries support billionaires paying higher taxes as a means of funding major improvements to the economy and lifestyles. Notably, more than 1.5 million people have already signed a petition for a global wealth tax, which was handed over to the Finance Minister of Brazil, Fernando Haddad, during the G20 meeting.
On the US government, Jeff Ordower, 350.org North America Director said that the US’s failed efforts to oppose this global taxation on the super-rich is outrageous.
“If the US government continues to operate in this way it risks missing out on a golden opportunity to collaborate with the rest of the world on this billionaire’s tax, and it is shameful we are continuing to be a playground of the richest and most unaccountable. As even billionaire Warren Buffett has said, “he pays less tax than his secretary,” said Jeff.
Ilan Zugman, 350.org Latin America Director based in Brazil emphasized that to build on successfully coordinating this joint statement, Minister Fernando Haddad has the moral imperative and responsibility to keep rallying G20 counterparts around the wealth tax proposal.
“This is the kind of positive leadership that Brazil can, and must, keep exerting in climate negotiations. It is key that Brazil pushes for the implementation of this wealth tax if it wants to be the climate-forward nation it is striving to be internationally. Especially when, at home, the country is increasingly being impacted by unnatural disasters like the recent deadly flooding in our southern region. We are witnessing how the costs of inaction come at an intolerable price,” added Zugman.
