Rio de Janeiro, Brazil – Finance ministers from the Group of 20 (G20) major economies have made a historic agreement to cooperate on taxing the world’s wealthiest individuals. This landmark decision, outlined in a joint declaration released on Friday, marks the first time G20 leaders have committed to addressing the issue of taxing the ultra-rich.
While the agreement is a significant step forward, key details such as the specific tax rates and the forum responsible for overseeing the implementation remain unresolved. Disagreements have emerged between member nations regarding whether the United Nations or the Organization for Economic Cooperation and Development (OECD) should lead the negotiations.
The US Treasury Secretary, Janet Yellen, has expressed a preference for the OECD, citing its track record in international tax cooperation. However, developing nations, including Brazil, have advocated for a broader UN-led approach.
Despite these differences, the G20’s commitment to taxing the super-rich is seen as a major victory for those advocating for greater tax fairness. The agreement comes amid growing public concern about income inequality and the concentration of wealth in the hands of a few.
