Representatives of Javier Milei’s government, who participate in the G20 negotiations, did not agree with the taxation of the super-rich. The issue is defended by President Luiz Inácio Lula da Silva and Finance Minister Fernando Haddad, but will face resistance from Argentina. The neighboring country’s position worries members of the Brazilian government, who see a risk of the proposal being overturned.
The newspaper Folha de S. Paulo disclosed that “the Argentine delegation stated that it had received express instructions to oppose the mention in the final document of taxation of the super-rich” during the negotiations.
The taxation of the super-rich, with income above R$1 million, is being discussed by President Luiz Inácio Lula da Silva’s economic team as an alternative to offset income tax exemption for taxpayers who receive up to R$5,000.
In a World Bank report published in October, taxation does not resolve fiscal issues of social inequality in Latin America.
“Wealth taxes gained prominence on the global agenda, especially during Brazil’s presidency of the G20, where these taxes are seen as a tool to reduce inequality, raise resources to combat global warming and improve global governance”, indicates the report.
G20 Summit
Representatives of the world’s main developed and emerging economies are meeting in Rio de Janeiro to prepare the final declaration that must be submitted for approval by leaders. The G20 summit takes place on November 18th and 19th, also in the capital of Rio de Janeiro.
