Greenpeace speaks of a “historic” agreement: The G20 finance ministers want the super-rich worldwide to pay more taxes. The USA and Germany are not enthusiastic.
The G20 finance ministers have agreed to work together on taxing the super-rich. “While fully respecting tax sovereignty, we will try to work together to ensure that very wealthy individuals are taxed effectively,” said the final declaration of the finance ministers’ meeting in Rio de Janeiro, Brazil. However, the finance ministers did not agree on a common global approach to tax policy.
“It is important that the richest countries see the problem”
Wealth and income inequalities undermine economic growth and social cohesion, the statement continued. Brazil’s Finance Minister Fernando Haddad said that from a moral point of view it was important that the 20 richest countries see the problem “that we have progressive taxation of the poor and not the rich.”
Germany and the United States rejected the need for a global agreement to tax billionaires. Such an initiative had been supported by France, Spain, South Africa, Colombia and the African Union.
Greenpeace on taxing the super-rich: “historic agreement”
The head of the International Monetary Fund (IMF), Kristalina Georgieva, welcomed the G20’s position on “tax justice”. The G20 ministers’ shared vision of progressive taxation comes “at the right time,” she said.
The non-governmental organization Greenpeace described the agreement as “historic.” It is an important step for the G20, which recognizes for the first time the need to tax the super-rich.
Source: Stern
