A new report by the European Union think tank Offers a new source of revenue for governments by taxing billionaires.
The EU Tax Observatory’s 2024 Global Tax Evasion Report says governments around the world should work together to prevent tax evasion. and creating a universal minimum tax rate for billionaires. It is expected to help raise $250 billion in global revenue each year.
The new tax is based on about 2% of the nearly $13 trillion worth of approximately 2,700 billionaires around the world, which will provide governments with significantly more revenue.
The report also indicates that Historically, billionaires have generally paid lower taxes than ordinary citizens. This is because those rich people have access to resources that allow them to funnel their money into shadow companies. or in an account abroad To avoid paying taxes in your own country
The EU Tax Observatory says the current tax rate for billionaires is around 0.5% in the US and close to 0% in France.
Many countries are currently trying to find ways to increase taxes on the wealthy. For example, President Joe Biden has proposed a 25% minimum tax on the top 0.01% of richest Americans, but the proposal is not expected to pass the US Congress.
Globally, in 2021, representatives from 140 countries reached an agreement on a 15% minimum tax for companies, limiting the ability of large multinationals to shift operations to countries with lower tax rates. than to pay less tax
French economist Gabriel Zachman, director of the EU Tax Observatory, said: “What many consider impossible may actually become reality.” The next step is to apply this idea to Billionaires in different countries are not just multinational corporations.
Image Credit: EU Tax Symposium Livestream Screenshot