World’s Billionaires Hit with Proposed 2 Percent Wealth Tax by Global Leaders

The world’s billionaires should pay at least a 2 percent wealth tax, according to a proposal reported by Britain’s Guardian. Brazil, Germany, Spain and the Republic of South Africa have signed a plan for a fairer tax system, which would bring in an additional 250 billion pounds (CZK 7.35 trillion) annually.

The money raised would be used to fight poverty, inequality and the climate crisis, the paper wrote. According to Forbes magazine, there are now 2781 billion people in the world.

The signatory states called on other countries to join their initiative. They maintain that the annual amount raised would be sufficient to cover the estimated cost of damage caused by last year’s extreme weather events.

French economist Daniel Zucman is now finalizing the technical details of the plan, which the G20 group will discuss again in June. France has announced its support for a wealth tax. Brazil, which now chairs the group, was encouraged that the United States, while not supporting a global wealth tax, was not opposed.

“Billionaires have the lowest effective tax rate of any social group. “I don’t think anyone supports that people who have the highest ability to pay taxes should pay the least,” said Zucman.

According to Oxfam, the rise in asset prices during and after the covid-19 pandemic meant that billionaires were $3.3 trillion richer at the end of last year. This is an increase of 34 percent compared to 2020. The World Bank study has shown that the pandemic has stopped the reduction of poverty.

But implementing change is difficult. “Wanting is one thing. It may be impossible to tax global wealth in this way,” Natland investment group economist Petr Bartoň told Novinkám. As for wealth, according to him, it is impossible to know where it is located, and it would be necessary to agree on all the countries of the world.

It is a little easier to tax income, where it is usually possible to find out where it came from, where it was created. “So at most it will be some version of an income tax that only presents itself as a tax on the rich. But even after that, it will be much more difficult than your physical,” said Bartoň.