Brazil FM Proposes Global Tax on Rich 03/01 06:45
RIO DE JANEIRO (AP) -- Brazil's finance minister told his peers Thursday at
a G20 meeting in Sao Paulo that countries should implement a global tax on the
super-rich in an effort to tackle rampant tax evasion.
Fernando Haddad said tax evasion can be resolved through international
cooperation so that "these few individuals make their contribution to our
societies and to the planet's sustainable development."
He added that Brazil is pushing for a declaration on international taxation
by G20 members that he hopes would be ready in July. But in a press conference
at the end of the meeting, he recognized the path would be far from smooth.
"There will be a lot of debate about this, which is absolutely natural,
especially because not every country feels the same way about this problem that
was brought to the G20 by Brazil," he said.
Brazil currently has the presidency of the 20 leading rich and developing
nations and President Luiz Incio Lula da Silva has put issues that concern the
developing world -- such as the reduction of inequalities and the reform of
multilateral institutions -- at the heart of its agenda.
"Brazil has a role to play, a legitimacy to use on the issues that need to
be addressed and that are not always represented in the G20," Haddad said,
pointing to environmental, social and fiscal issues.
According to a 2023 study by advocacy group Tax Justice Network, countries
around the world could lose up to $4.8 trillion in tax revenue over the next
decade due to tax havens. And a report earlier this year by the EU Tax
Observatory cited by Haddad, found that billionaires worldwide have effective
tax rates equivalent of between 0% and 0.5% of their wealth.
In recent years, scandals such as the Panama Papers Leak and the Paradise
Papers have shone a light on the pervasiveness of tax evasion and avoidance in
Meanwhile, the gap between the super-rich and the bulk of the global
population has been supercharged since the coronavirus pandemic, according to
anti-poverty organization Oxfam International.
"There are fewer taxes on assets today than two or three decades ago. The
global movement has tended towards reducing taxation on companies and wealth,"
said Andr Vereta-Nahoum, a sociology professor at the University of Sao Paulo.
But with inequalities soaring, more are calling for higher taxes on the
wealthy -- including U.S. President Joe Biden, who has pushed for a billionaire
minimum income tax although the likelihood of Congress passing that proposal is
In a sign of growing global consensus on the matter, the United Nations
General Assembly adopted a resolution late last year backing stronger
international tax cooperation to "make it fully inclusive and more effective."
"The difficulty is no longer putting the issue on the table, the data is
there. The difficulty is arriving at a common document," said Carla Beni, an
economist from the Getulio Vargas Foundation, a university and think tank.