Brazil is pushing for the super-rich around the world to pay more taxes. Some in the federal government think this is a good thing – and others don’t.
The FDP-led Federal Ministry of Finance rejects a tax on billionaires that is being discussed at the G20 level. “We do not believe that the idea of a global minimum wealth tax is effective,” say ministry sources. The idea presented by this year’s G20 chair Brazil is also not capable of achieving consensus internationally. The topic will therefore not be discussed in detail at the meeting of the finance ministers of the leading industrial and emerging countries in Rio de Janeiro this week.
Instead, the Ministry of Finance is committed to taking stronger action against asset concealment and tax evasion. “This must be combated across borders,” it said.
Brazil’s concept requires billionaires to transfer at least two percent of their wealth to their home country each year. This could lead to revenues of up to 250 billion dollars, which could be used to combat hunger and conflict, to prevent pandemics and to protect the climate. Development Minister Svenja Schulze (SPD) had shown herself open to the idea.
The billionaire tax is not the only controversial issue that is to be excluded from the final document of the finance ministers’ meeting. The different assessments of the G20 states regarding the Russian war against Ukraine and the Middle East conflict are not to be addressed in the communiqué, but only in a separate paper from the host country. Since the beginning of the Ukraine war, there have been several failures to reach final declarations because Russia is also a member of the G20 and refused to mention the war.
Germany will be represented at the meeting in Brazil by Finance State Secretary Heiko Thoms; Finance Minister Christian Lindner (FDP) will not be attending.
Source: Stern
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