The G20's call for a global tax on billionaires reflects a growing recognition of the need to address wealth inequality, which has been exacerbated by economic challenges in recent years.
The potential revenue from the proposed tax could significantly enhance funding for social programs and development projects, particularly in low-income countries.
If implemented, the global tax on billionaires could set a precedent for international tax cooperation and influence domestic tax policies in various countries.
The financial contributions pledged by leaders like Biden may lead to increased support for international development initiatives, potentially improving conditions in the world's poorest regions.
On November 19, 2024, during the G20 summit in Rio de Janeiro, Brazil, leaders from major economies expressed support for a global tax on billionaires, aimed at addressing wealth inequality and funding essential projects. Brazilian President Lula da Silva has been a vocal advocate for this tax, which could generate significant revenue to combat hunger, prevent epidemics, and address climate change. The proposed tax would require billionaires to pay 2% of their assets annually, potentially raising up to $250 billion.
The G20 summit statement emphasized the need for cooperative efforts to ensure effective taxation of the wealthiest individuals, although it did not outline specific implementation plans or timelines. This initiative is particularly relevant as the combined wealth of the world's ten richest individuals has surged to approximately $1.75 trillion, highlighting the growing disparity in wealth distribution.
The proposed tax would impact around 3,000 billionaires globally, including about 100 in Latin America. This initiative comes amid broader discussions among countries like the UK, France, Switzerland, and the US about imposing taxes on the wealthy to address financial challenges. Outgoing US President Joe Biden has also pledged a record $4 billion contribution to the World Bank’s International Development Association, aimed at supporting the world's poorest nations.
