Brazilian President Luiz Inacio Lula da Silva is leading efforts at the G20 summit in Rio de Janeiro to introduce a global tax on billionaires.
The proposal, crafted by French economist Gabriel Zucman, seeks a 2% annual levy on the wealth of ultra-high-net-worth individuals, including their assets, investments, and real estate.
Supporters claim it could generate $250 billion annually to fund poverty reduction and climate initiatives.
However, resistance remains strong, particularly from the United States and countries balancing their own economic challenges.
At a G20 finance ministers’ meeting in July, member nations tentatively agreed to explore progressive taxation for the ultra-rich.
Despite this, geopolitical priorities such as conflicts in Ukraine and Gaza, as well as global trade tensions, are expected to dominate the summit’s agenda, complicating progress on the wealth tax.
A Bold Vision for Global Equity
The proposed tax targets the world’s 2,800 billionaires, whose combined net worth stands at $13.5 trillion.
Proponents argue that the measure could address growing global inequalities, particularly in developing nations struggling with debt and the escalating impacts of climate change.
According to Tomas Marques, a research fellow at Hamburg’s GIGA Institute for Latin American Studies, “The taxation of high net-worth individuals is very important as it could be a source for funding initiatives that fight hunger and poverty, and also tackle climate change.”
Skepticism from Wealthy Nations
While Brazil, France, Spain, and South Africa support the proposal, the United States is the main opponent.
Treasury Secretary Janet Yellen rejected it in May, and former President Donald Trump’s prior policies—marked by tax cuts for the wealthy—suggest that his stance on the issue is unlikely to change.
In Brazil, domestic efforts to pass similar legislation have also faltered.
Last month, the country’s Chamber of Deputies rejected a proposed wealth tax, with critics citing the challenges of enforcing such policies against a backdrop of entrenched inequality and widespread tax avoidance strategies.
Africa’s Voice Grows Louder
For the first time, the African Union is participating in the G20 as a full member, marking a pivotal shift in the bloc’s composition.
African nations see the proposed wealth tax as an opportunity to secure much-needed funds to combat poverty and climate impacts.
Marques sees the AU’s inclusion as a turning point.
“African countries have been underrepresented in the G20 despite the continent’s importance globally. But things are changing, and the African Union is now starting to have some influence on policymaking.”
Whether the proposal succeeds or falters, Lula’s push for the tax has brought attention to the role of extreme wealth in addressing global challenges.
It has also sparked a broader discussion on how business and governance intersect in shaping a more equitable future.
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