G20 Finance Ministers Meeting In Brazil Tackle Global Tax On The Super-Rich

Finance ministers from leading rich and developing nations gathered in Rio de Janeiro for a two-day meeting to discuss a global tax on the super-rich, a top priority for Brazil, which holds the presidency, the Associated Press (AP) reported.

The final declaration will mention a proposal to tax the super-rich, but the wording or whether it will specifically cite the 2% proposition was not detailed. I Photo: G20 Brasil Facebook

According to the proposal before the Group of 20, individuals with over $1 billion in total assets would be required to pay the equivalent of 2% of their wealth in income tax.

Brazil's Finance Minister Fernando Haddad told reporters that the final declaration will mention a proposal to tax the super-rich, but he didn't detail the wording or whether it will specifically cite the 2% proposition.

"Against the skepticism expressed by everyone since the beginning of the year, we have taken a first step," Haddad said, adding that ministers agreed it was necessary to include mention of the proposal so that it maintains its centrality after Brazil leaves the presidency.

"What has been initiated today is a broader process that will require the participation of academia, scholars, and international organizations with experience in the subject, such as the OECD and the UN," Haddad added.

France, Spain, and South Africa—which will chair the G20 in 2025—had expressed support, an official from the Brazilian Ministry of Finance told journalists last week.

But US Treasury Secretary Janet Yellen reiterated at a news conference that the US does not support the initiative, Mainichi Shimbun also reported.

"Tax policy is very difficult to coordinate globally, and we don't see a need or really think it's desirable to try to negotiate a global agreement on that," Yellen said, although she emphasized the US is "strongly supportive of progressive taxation."