Tax on the super-rich approved in G20 leaders' declaration
Meeting in Rio de Janeiro, the heads of state and government of the G20, the main forum for international economic cooperation, endorsed a proposal for progressive taxation, which calls for the effective taxation of individuals deemed super-rich. The proposal is included in the summit's final communiqué, released on Monday afternoon (Nov. 18), the first day of the annual meeting.
"With full respect for tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed. Cooperation may include exchanging best practices, fostering debates on tax principles, and developing anti-avoidance mechanisms, such as addressing potentially harmful tax practices. We look forward to continuing discussions on these issues within the G20 and other relevant forums, drawing on the technical contributions of international organizations, universities, and experts," says the document, whose final content was approved by consensus.
This proposal to tax the super-rich was the result of the consensus reached in the G20 Ministerial Declaration on International Tax Cooperation in Rio de Janeiro, brokered by the Brazilian government. This agreement was upheld in the final version released, without any reservations.
Estimates from the Brazilian Ministry of Finance suggest that a 2 percent tax on the wealth of the super-rich could generate $250 billion annually, to be invested in combating inequality and funding the ecological transition. This group of ultra-wealthy individuals comprises around 3,000 people, whose combined assets total approximately $15 trillion—more than the GDP of most countries. However, the G20 text does not propose a specific tax rate.
The final G20 charter also advocates for progressive taxation, where individuals with greater resources are taxed at higher rates. This is presented as one of the "key tools to reduce internal inequalities, strengthen fiscal sustainability, promote budget consolidation, foster strong, sustainable, balanced, and inclusive growth, and facilitate the achievement of the SDGs [Sustainable Development Goals]."
Fighting hunger
In the same section addressing progressive taxation, the final G20 communiqué highlights the rising number of people facing hunger, which reached approximately 733 million by 2023, “with children and women being the most affected.” To tackle this global challenge, the communiqué calls for a stronger, more effective commitment and references the Global Alliance Against Hunger and Poverty, a Brazilian initiative endorsed by 82 countries, along with numerous multilateral and private institutions.
“The world produces more than enough food to eradicate hunger. Collectively, we don't lack the knowledge or resources to fight poverty and defeat hunger. What we need is the political will to create the conditions to expand access to food. In this context, we are launching the Global Alliance Against Hunger and Poverty and welcoming its innovative approach to mobilizing funding and sharing knowledge to support the implementation of large-scale, evidence-based, country-led, and country-owned programs aimed at reducing hunger and poverty globally," the communiqué states.
During Brazil's presidency, the key priorities were combating hunger and poverty, reforming multilateral institutions, and addressing climate change.
