Study: International Tax on Rich Could Net $250B Annually

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Facts

• A study commissioned by the government of Brazil has proposed a global tax on the ultra-wealthy, claiming this would be both 'technically feasible' and 'economically beneficial.'¹
• The study, conducted by French economist Gabriel Zucman, says such a levy on the world’s 3K billionaires could rake in up to $250B in revenue annually.²
• Currently, these 3K pay some 0.3% of their wealth as tax, the report claims. The extra revenue could reportedly help in education, healthcare, climate change efforts, and other areas.³
• The study targets those with over $1B in assets, seeking a minimum global tax of 2% on such wealth, except on those who already pay at that rate.⁴
• Published on Tuesday, the study is a key element of Brazil's G20 presidency, with it likely to be discussed by the group's finance ministers in Rio de Janeiro in July.⁵
• Five G20 members — Spain, Colombia, Belgium, France, and the African Union — have reportedly voiced support for the proposal.⁶

Sources: ¹Common Dreams, ²Guardian, ³ABC News, ⁴Ft, ⁵Bloomberg and ⁶Voice of America.

Narratives

• Left narrative, as provided by New York Times. The ultrawealthy are exceptionally adept at evading taxes. Earning from investments, and not salaries, lets them reinvest profits and borrow against their assets tax-free. The proposed global minimum tax on billionaires could both tackle growing inequality and ensure fairer tax contributions.
• Right narrative, as provided by Tax Notes. A global wealth tax on billionaires would be counterproductive. It would deplete their savings and discourage investments crucial for economic growth, hindering long-term economic stability. Managing and enforcing such a tax would also strain existing systems.

Predictions