WHAT DOES THE G20 STUDY SAY ABOUT TAXING BILLIONAIRES?

A 2% tax on 3,000 billionaires around the world would generate extra income for the public coffers of US$ 250 billion each year (around R$ 1.35 trillion, at current prices), enough to guarantee more efficient action against inequality . This is the conclusion of a study commissioned by the G20, given Brazil's proposal to create a tax on large fortunes.

The document, prepared by French economist Gabriel Zucman, also concluded that if there is a tax on people with a fortune of more than US$100 million, annual revenue could also add up to another US$140 billion.

Worldwide, 65,000 adults have assets worth more than US$100 million and control US$16.9 trillion.

The report, titled "A Blueprint for a Coordinated Minimum Tax on Ultra-High Net Worth Individuals," reached the following conclusions and proposals:

Applying a minimum tax rate of 2% on wealth for dollar billionaires (about 3,000 individuals worldwide), which would generate about $250 billion per year in additional tax revenue.

Taxes would only have to be paid by billionaires who do not yet pay the equivalent of 2% of their wealth in income tax. In this way, the proposal is not a tax on wealth, but works as a supplementary mechanism. The tax, however, would be applied to assets, not income.

Felipe Oliveira, from the Ministry of Finance, indicated that the tax is a priority for Brazil's presidency of the G20. "The study is a key part of the strategy to negotiate the issue," he said. According to him, one of the arguments against it is that implementation would be difficult, in technical terms. But the study reveals that it can be done today.

The government representative, however, warns that, even if there is consensus among academics, "negotiations between governments promise to be long."

Zucman confirms: the tax is possible and can be implemented. But he admits that getting the law through different parliaments will be "a battle".

For him, the path would be global coordination, including more information exchange and a common standard to avoid competition between governments. He recalls that, in 2021, 130 countries adopted a minimum tax of 15% on multinationals.

The economist highlights that an international agreement would not be necessary for this to come into force. But a commitment to coordination. "It's not about creating a global tax", he explained, insisting that each collection would continue within its sovereignty.

In his assessment, one of the challenges is establishing who should be taxed. His suggestion is not to create taxes on profits or annual revenues. But about heritage.

To achieve this, one of the ways would be to measure who holds shares in companies listed on the stock exchanges and the stakes of individuals in companies.

To combat evasion, the economist suggests that there be an increase in the exchange of information between governments. The same system already exists in the case of finance and banks. Therefore, his suggestion is that this mechanism be expanded to exchange data on who the owners of shares and companies would be. "Evasion is not a law of nature," he said.

The document makes it clear that there is no risk that this rate will involve the middle class or the vast majority of entrepreneurs who have been successful in their businesses. In the world, out of every 1 million families, only one would meet this criterion.

If you are on the select list of around 50 Brazilians who have more than US$1 billion, you will be hit. The United States, France, the Netherlands and Italy together are home to about 35% of global billionaires and account for about 40% of billionaires' global wealth.

In Latin America, the forecast is that taxes would reach only 105 people who, together, have US$419 billion. Taxing them at 2% would generate $7 billion in extra revenue.

According to the study, there is a growing concentration of wealth in the hands of these people. The wealth of the richest 0.0001%, expressed as a fraction of world GDP, has multiplied more than fourfold since the mid-1980s:

In 1987, the richest 0.0001% owned the equivalent of 3% of world GDP in wealth.

In 2008, this wealth gradually increased to 8% of world GDP.

In 2024, this wealth will exceed 13% of global GDP.