The international community is being urged to take action to ensure that the world’s richest companies and individuals pay their fair share of taxes. Brazil and France’s finance ministers made this call during an event at the International Monetary Fund in Washington.
Brazil, which is currently chairing the G20, is pushing for a united stance from the group of nations to prevent tax avoidance by billionaires. Brazilian finance minister Fernando Haddad emphasized the importance of fair international taxation in today’s macroeconomic management.
French finance minister Bruno Le Maire supported the idea of a global minimum tax and called for measures to crack down on tax avoidance. France has already implemented a minimum tax on tech giants and supports a 15 percent global minimum tax rate.
Both ministers highlighted the need for the world’s wealthiest individuals to contribute more in taxes. They proposed steps to improve transparency and information-sharing between countries to determine the appropriate amount of tax for the super-rich.
A wealth tax could potentially generate significant revenue for states to fund initiatives like the transition to a greener economy. According to a report by the NGO Global Citizen, a 2 percent wealth tax on billionaires globally could bring in around $250 billion in additional tax revenue annually.
Overall, the call for fair taxation and greater cooperation on tax matters is seen as crucial for ensuring a more equitable global economic system.
