TThere is nothing more disastrous than having to tax wealthy people like me. The extreme concentration of wealth in the hands of a few oligarchs poses a threat to democracy around the world. Meanwhile, we are cooking the planet and causing irreversible damage to the biosphere.
Last summer was the hottest on record, but we also saw historic wildfires, Biblical floods, devastating droughts, and rising ocean temperatures. It stands to reason that the funds to mitigate further damage and develop green energy systems will come from those most able to pay. By the way, they are the ones spending a disproportionate amount of their money on jet-setting, gas-guzzling lifestyles.
This week, finance ministers and central bank governors from G20 countries will attend the Spring Meetings of the World Bank and International Monetary Fund (IMF) in Washington, DC. They will have a chance to raise taxes on the wealthy.
At the recent São Paulo, Brazil conference in February this year, economists and G20 financial leaders spoke about how the world's billionaires are now richer in number (2,781) and wealth ($14.2 trillion). He floated the idea of introducing a global minimum tax. Best ever. This is in line with countless recommendations and demands from economists and communities around the world, including the EU tax watchdog's proposal to impose a 2% tax on billionaires in its landmark report last year. It is.
The finance ministers of both Brazil and France have publicly expressed support for the idea, and a handful of other countries have privately pledged to activists that they will support the policy framework.
The G20's move to address this issue is a small sign of progress. But for nearly 20 years, I've been asking the United States to raise taxes on me and other wealthy Americans. But in the meantime, the global economy has become increasingly interconnected, making it easier than ever for the super-rich to move capital around to avoid paying taxes. As a result, billionaires no longer have to pay lower tax rates than all other income groups. Therefore, any serious attempt to curb rising wealth inequality must be undertaken on an international scale. If G20 countries want to set minimum standards for taxing the wealthy, they have no choice but to work together.
Establishing a global minimum tax for billionaires will undoubtedly be complex, but not impossible. After decades of intense negotiations, just three years ago, 136 OECD countries joined an agreement establishing a 15% global minimum tax on multinational corporations. If we can create a tax floor for the world's largest corporations, there's no reason why we can't do the same for the world's wealthiest individuals.
There is another clear and immediate threat posed by extreme concentration of wealth. As inequality spirals out of control, millions of economically disenfranchised people around the world are turning their backs on democracy and supporting authoritarian, right-wing demagogues. Voters believe that the system is rigged against them (and they are right), but authoritarians use that energy to attack democratic institutions, both figuratively and literally. ing.
As we saw with the January 6 attack on the Capitol and the January 2023 attack on Brazil's federal building, far-right extremists can use anger as a weapon to erode and destroy the guardrails of democracy. If the G20 tackled the problems of the world's extremely wealthy people, it could strengthen beleaguered democratic institutions and limit social unrest.
So what's getting in the way? There's no way there's no support from the people. From 2017 to 2022, opinion polls in all G20 countries showed strong support for reducing inequality and increasing taxes on the wealthy. A 2023 survey found that even the richest people in G20 countries support tax increases. And finally this week, a group called Patriotic Billionaires, of which I am also a member, has created an eye-opening projection on the IMF and World Bank buildings to highlight our support for raising taxes on ourselves. sponsored.
It is promising that economic powers such as France and Brazil will support the introduction of a global minimum tax on the world's wealthiest people, but there is a lack of visible voices, including that of my own economic representative, US Treasury Secretary Janet Yellen. ing. Yellen has not yet expressed his support for this being added to the G20 agenda. It would be an inevitable mistake for Brazil and France to take the lead, while the United States and other major G20 countries fall short.
Supporting this international process would demonstrate the United States', and Joe Biden's, commitment to requiring the wealthy to pay their fair share of taxes while promoting a stronger and fairer economy. As I said, this issue is popular in the polls. It's no secret that Mr. Biden could certainly use this aid.
Again, we are making progress. But the work is just beginning. The Spring Meetings will be an opportunity for G20 countries in general and the United States in particular to strengthen their resolve to save the planet and protect democracy. The first step is to tax the wealthy.
If a billionaire like me, born into one of the most famous families on the planet, wants the wealthy to pay more in taxes, there is no reason or excuse for the G20 to ignore our pleas.
