The discussion around taxing the super-rich, commonly termed as the ‘billionaire tax’, is gaining momentum within the G20 countries. The Congress party in India is now pressing Prime Minister Narendra Modi to clarify the country’s stance on this issue as the G20 prepares to deliberate upon it in Rio de Janeiro later this month.
Congress general secretary Jairam Ramesh highlighted the global consensus advocating for billionaires to pay their fair share of taxes. With Brazil’s proposal, endorsed by countries like France, Spain, South Africa, and Germany, suggesting a 2 per cent wealth tax on billionaires, the world is moving towards a more equitable tax system.
India, being home to 167 billionaires, could generate a significant annual revenue of 1.5 lakh crores through such a tax. Ramesh emphasized that this revenue could fund crucial public services like education, healthcare, and renewable energy sectors. The need for India to take a clear stance on this issue at the upcoming G20 meeting in Rio de Janeiro was emphasized.
Former world leaders have also come forward in support of a global tax on billionaires. Notably, an open letter signed by 19 Club de Madrid members, including figures like Michelle Bachelet and Stefan Lofven, urged the G20 nations to support the tax proposal. The initiative aims to tackle tax evasion by the wealthiest individuals worldwide.
French economist Gabriel Zucman, an instrumental figure in drafting the EU Tax Observatory’s proposal for a 2 per cent levy on fortunes exceeding $1 billion, believes this measure could generate up to $250 billion annually. The proposal aligns with the global trend towards more progressive taxation to address wealth disparities and ensure a fairer distribution of resources.
The debate around the billionaire tax at the G20 reflects a growing emphasis on progressive tax systems to address economic inequalities and bolster public services. Stay tuned for more updates on this crucial issue and its potential implications for India and the global economy.
