Brazil’s finance minister says the “super-rich” can avoid tax collection, meaning at the top of the pyramid “systems are regressive, not progressive.”
The Brazilian government has proposed creating a tax for the super-rich to finance the projects of the Global Alliance against Hunger and Poverty, an initiative presented by the Brazilian president on Wednesday in Rio de Janeiro by the G20.
Brazil’s Finance Minister Fernando Haddad said a significant increase in resources is needed for countries to meet the Sustainable Development Goal (SDG) they have committed to eradicating hunger by 2030, as well as seeking innovative sources to finance these projects.
Lula da Silva says hunger is the most degrading deprivation and urges G20 leaders to fight it
“Another way to mobilize resources to combat hunger and poverty is to make the super-rich pay their fair share of taxes. All over the world, the super-rich use a number of tricks to evade tax systems. This causes, At the top of the pyramid, systems are regressive, not progressive.“, the minister stressed in his speech at the G20.
The founding documents of the Alliance, an initiative proposed by Lula da Silva and open to all countries, were approved by acclamation on Wednesday at the ministerial meeting of the forum that brings together the world’s largest economies, so that from now on any interested country can join.
The Alliance will officially begin to operate, with its founding members and their different projects, at the G20 Summit to be held in November in Rio de Janeiro, when the interim presidency of the forum, currently held by Brazil, ends.
According to its creators, The idea is for each country to develop its own plan and define its objectives to combat hunger and poverty.and may the Alliance help you achieve them, both financially and in terms of experience and technology.
As for the possibility of a tax on the super-rich, this discussion will take place starting Thursday, also in Rio de Janeiro, during the meeting of Finance Ministers and Central Bank Presidents of the G20.
In an interview with Lusa, economist Quentin Parriniello, one of the authors of the report that will be presented on Thursday to the G20 finance and central bank officials, considered thatTaxing the super-rich is a matter of “survival of democracy”.
The political director of the European Union Fiscal Observatory said that this proposal is not only about “increasing revenues, but also a way of rebuilding trust with governments.”
“We must clearly demand that we are able to design a tax system in which those who are better able to pay taxes pay as much as the rest of the population,” stresses the French economist, referring to the current system.
Brazil, which holds the presidency of the group of the world’s 20 largest economies (G-20) until the end of November, commissioned the report and hopes it will be supported by as many countries as possible during the group’s Finance Ministers and Central Bank Presidents summit, which takes place between Thursday and Friday in the Brazilian city of Rio de Janeiro.
The report’s findings indicate that a minimum tax of 2% on billionaires would be the most appropriate option to restore tax progressivity worldwide and raise more than $250 billion (230.9 billion euros at current exchange rates) per year.
According to the European Union Tax Observatory, there are fewer than 3,000 billionaires in the world.
Source: Observadora
