Brazil's Radical Plan To Tax Global Super-Rich To Tackle Climate Crisis

An anonymous reader quotes a report from The Guardian: Proposals to slap a wealth tax on the world's super-rich could yield $250 billion a year to tackle the climate crisis and address poverty and inequality, but would affect only a small number of billionaire families, Brazil's climate chief has said. Ministers from the G20 group of the world's biggest developed and emerging economies are meeting in Rio de Janeiro this weekend, where Brazil's proposal for a 2% wealth tax on those with assets worth more than $1 billion is near the top of the agenda. No government was speaking out against the tax, said Ana Toni, who is national secretary for climate change in the government of President Luiz Inacio Lula da Silva. 'Our feeling is that, morally, nobody's against,' she told the Observer in an interview. 'But the level of support from some countries is bigger than others.'

However, the lack of overt opposition does not mean the tax proposal is likely to be approved. Many governments are privately skeptical but unwilling to publicly criticize a plan that would shave a tiny amount from the rapidly accumulating wealth of the planet's richest few, and raise money to address the pressing global climate emergency. Janet Yellen, the US Treasury secretary, told journalists in Rio that the US 'did not see the need' for a global initiative. 'People are not keen on global taxes,' Toni admitted. 'And there is a question over how you implement global taxes.' But she said levying and raising a tax globally was possible, as had been shown by G7 finance ministers' agreement to levy a minimum 15% corporate tax. 'It should be at a global level, because otherwise, obviously, rich people will move from one country to another,' she said.

Only about 100 families around the world would be affected by the proposed 2% levy, she added. The world's richest 1% have added $42 trillion to their wealth in the past decade, roughly 36 times more than the bottom half of the world's population did. The question of how funds raised by such taxation should be spent had also not been settled, noted Toni. Some economists have argued that the idea was more likely to be accepted if the proceeds were devoted to solving the climate crisis than if they were used to address global inequality. Other experts say at least some of the money should be used for poverty alleviation.

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