No green light from G20 for billionaire tax
G20 finance officials, who will meet in Brazil today, are preparing a joint statement that supports progressive taxation but does not endorse the host country's proposal for a global "billionaire tax."
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Although Brazil's presidency of the Group of 20 major economies this year has secured support from some countries for a joint effort to tax ultra-high-net-worth individuals, the discussions are still in the early stages.
In addition to South Africa, which will assume the G20 presidency next year, France, Spain, Colombia, Belgium, and the African Union have also supported the idea. However, the proposal has faced high-profile resistance, including from U.S. Treasury Secretary Janet Yellen.
Sources from the German Finance Ministry, who opposed the idea in April, stated that taxing the super-rich is not on the agenda for this week's G20 meetings. The sources said that tax discussions would focus on other ideas, such as combating tax evasion and the concealment of wealth.
A G20 official said that Thursday's joint statement is expected to include a call for cooperation to reduce tax evasion by the super-rich through increased information exchange and best practices.
A broader G20 joint statement is expected to be released on Friday, when the meetings of finance ministers and central bank governors in Rio de Janeiro conclude.