Meeting in Rio de Janeiro is scheduled for November 19th and 20th; preliminary studies indicate that the measure would affect around 3,000 people worldwide
The G20 Summit meeting, scheduled for November 19th and 20th, in Rio de Janeiro, will have as one of its main themes Brazil’s proposal to tax the super-rich. Since the beginning of the year, the Brazilian government’s economic team has been committed to presenting this idea to several countries, seeking international support and collaboration. If there is no significant progress during the G20 meeting, Brazil is determined to implement the measure internally. The proposal aims to create a contribution where the richest are taxed more, reducing the tax burden on low-income populations, with the expectation that this initiative can expand globally.
Preliminary studies indicate that the taxation proposed by the Brazilian government would affect around 3,000 people around the world, approximately 100 of them in Latin America. Potential revenue is estimated at US$250 billion per year. Although the tax is relatively small, around 2% on large fortunes, the Minister of Finance, Fernando Haddad, recognizes that there is still significant resistance. The discussion on taxation will be one of the central themes at the G20 meeting, which will also address crucial issues such as combating hunger, poverty, inequality and sustainable development, in addition to the reform of international organizations.
The proposal, however, faces considerable challenges due to the power and influence of the super-rich group. Historically, attempts to implement similar measures have been rejected by countries that benefit from the current financial structure. There is growing concern that taxation could lead billionaires to move their resources to places where they would not be taxed, which could undermine the effectiveness of the measure. Experts warn that the solution to fiscal and poverty problems in Brazil requires a more rational and professional approach, in addition to efficient management of the resources collected.
*With information from Luciana Verdolin
