George Papandreou was amongst those that signed the letter from the Membership de Madrid, the most important discussion board of democratic former Presidents and Prime Ministers, to the G20 leaders.
It talks about the necessity to improve the taxation of the super-rich for the advantage of the weaker social teams as a way to cut back inequality and make investments in improvement coverage.
The content material of the letter to the G20 leaders
We, the undersigned former Heads of State and Authorities of the G20 international locations in addition to high-income international locations, are writing to ask you to assist Brazil’s proposal, chaired by the G20, for a brand new world tax settlement on the world’s super-rich.
As former leaders, we instantly acknowledge when a novel strategic alternative presents itself. Taxes are the pillar of a society that’s civilized, productive and affluent. Nevertheless, these days the super-rich around the globe pay a decrease tax charge than lecturers and cleaners.
Billionaires worldwide pay a tax charge equal to lower than 0.5% of their wealth. Trillions of {dollars} that would have been productively invested in self-government, schooling, well being and infrastructure have as a substitute collected counter-productively within the palms of the super-rich. The result’s excessive inequality.
In G20 international locations, the earnings share of the highest 1% of earners has elevated by 45% in 4 a long time, whereas the highest tax charges on their incomes have fallen by round a 3rd.
That many voters really feel that the social contract has damaged down and that their democracies are leaving them on the sidelines is totally comprehensible. We all know you realize these. However our age can change into the age of realizing a brand new promise.
And Brazil’s proposal to the G20 highlights the chance to write down a brand new chapter of historical past round truthful taxation for the primary time in our time.
We commend governments which might be pioneering and main daring proposals to deal with inequality. We spotlight President Biden’s proposal to tax billionaires, which is a worldwide instance to observe.
Throughout the globe and throughout the political spectrum, taxing the super-rich enjoys continued fashionable assist, even among the many super-rich themselves. The bottom-breaking choice by the G20 international locations was essential in securing a worldwide settlement on a minimal tax on multinational companies. Now’s the time to do the identical for the tremendous wealthy.
Each authorities ought to tax the tremendous wealthy. Each nation can act. Nationwide motion is crucial. We have to tax the earnings of billionaires in each nation. However laws on the nationwide stage can solely go to date.
As a result of world capital doesn’t respect nationwide borders. Tax avoidance and evasion by the super-rich is achieved when governments fail to cooperate.
We’d like world cooperation. That’s the reason the proposal offered by President Lula who presides over the G20, specifically the proposal for a brand new world settlement on the taxation of the world’s super-rich, is critical and of strategic significance.
Now’s the time to advance cooperation on a typical commonplace so that each billionaire on earth pays a minimal stage of earnings in taxes.
We commend the governments of France, South Africa and others who assist this much-needed G20 proposal and be a part of forces with the distinguished economists who assist it.
A brand new world settlement on the taxation of the super-rich is essential and strengthens nationwide efforts to make sure that the super-rich can’t keep away from their home tax obligations.
It can cut back inequality and lift trillions of {dollars} wanted for funding in improvement coverage and a simply transition to sustainable economies.
A world settlement on the taxation of the super-rich can be a stimulatory injection, would give new life to multilateral cooperation. It can show that governments can work collectively for the widespread good, particularly at a time when North-South solidarity is fraying throughout a decade that has seen pandemics and wars.
This partnership may even be impressed by the present G20 world minimal company tax settlement in 2021 agreed by 136 international locations.
And a worldwide deal would additionally assist our economies to be extra productive and resilient to crises. It should be designed in a manner that reduces the tax burden on the working courses and be bold sufficient to right inequality whereas respecting the political decisions for taxation in every nation.
We all know firsthand the fact of political energy and the constraints of any management – together with the pressures positioned on you. However hardly ever are there proposals that decision us as former leaders to unite – and that we see as politically possible.
This proposal is clearly one among them. Expensive G20 leaders – you lead the world’s strongest economies and on this interval of political and financial stagnation, you could be the brokers of progress and alter. We ask you to steer for a brand new, truthful tax coverage. We’re by your facet and able to assist this initiative.
Yours sincerely,
The undersigned*:
Carlos Alvarado – President of Costa Rica (2018-2022)
Michelle Bachelet – President of Chile (2006-2010, 2014-2018) and Vice-President of Membership de Madrid
Jan Peter Balkenende – Prime Minister of the Netherlands (2002 – 2010)
Valdis Birkavs – Prime Minister of Latvia (1993-1994)
Kim Campbell – Prime Minister of Canada (1993)
Laura Cinchilla – President of Costa Rica (2010-2014)
Helen Clark – Prime Minister of New Zealand (1999-2008)
Julia Gillard – Prime Minister of Australia (2010-2013)
Felipe Gondaleth – Prime Minister of Spain (1982-1996)
Dalia Grybauskaite – President of Lithuania (2009-2019)
Alfred Gusenbauer – Chancellor of Austria (2007-2008)
Han Sung-soo – Prime Minister of South Korea (2008-2009) and Vice President of Membership de Madrid
Alexander Kwasniewski – President of Poland (1995-2005)
Deputy Leterme – Prime Minister of Belgium (2008; 2009-2011)
Stefan Löven – Prime Minister of Sweden (2014-2021)
George Papandreou – Prime Minister of Greece (2009-2011)
José Luis Rodríguez Zapatero – Prime Minister of Spain (2004-2011)
Danilo Turk – President of Slovenia (2007-2012) and President of Membership de Madrid
Dominique de Villepin – Prime Minister of France (2005-2007)
* All signatories are full members of the Membership de Madrid, the most important discussion board of democratic former Presidents and Prime Ministers.
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