The European Union is analyzing how to make the richest people pay more than $ 250 billion in taxes

If the world’s highest income earners paid 2% of their wealth, the states would collect Between $200,000 and $250,000 million more. This is the conclusion of the report by French economist Gabriel Zucman for the G-20, published this Wednesday, June 26. Zucman is the director of the European Union Tax Observatory and one of the leading experts on tax evasion and avoidance. From this same institution, economists are designing a tax proposal Entering these amounts for the states.

The Aadhaar proposal emphasises that people who have net worth Over 1,000 million euros Pay 2% of their wealth. Of course, as long as they do not contribute said amount to the treasury through personal taxes on their income. Likewise, Zucman defends that countries can also use “last resort collection” mechanisms. That is, to demand the income that other people give up by not applying the usual framework of these taxes.

There are about 3,000 people in the world whose wealth exceeds $1,000 million, which is the equivalent of yours in eurosus 935 million euros. This measure would thus lead to a collection of around 80 million for each of these individuals, although other options are also being studied.

If this tax were applied to estates worth more than $100 million, it would be between Between $100,000 and $140,000 million annually Addition. If the rate was 3%, the collection would have been around 550,000 and 690,000 million Of the dollar.

Regarding current tax systems, the economist defends: “They do not tax the richest people effectively.” According to him, this “failure” not only deprives countries of obtaining more income, but also “Helps to concentrate profits globalization is in the hands of relatively few”, which undermines “global stability”.

From 3% to 14% of world GDP: How much have the fortunes of these rich people increased?

The wealth of the ‘mega-rich’ has tripled in the last 25 years. This means that if in 1985 its wealth was 3% of the world’s GDP, today it is has reached 14%as reported by media outlets such as El País. Undoubtedly, this contributes to the public treasury 0.3% of your net worth, Because they have tools to avoid taxes. For example, the use of holding companies or similar structures.

As Zucman’s report points out, the proposal aspires to be “a flexible standard” that respects “national sovereignty.” Thus, governments can choose what measures to implement it, as it is “a tool” to “strengthen income taxation.” Even if these taxes are not implemented in all countries. It will still be “successful” By supporting “national progressive tax policies.”

Agreement of 140 countries and more concentrated money

The G-20 report on this measure comes at a very opportune time. First, because many tax systems are considering a return to progressivity after raising taxes on labour rather than capital. This awareness has materialised in the agreement among 140 countries to impose a minimum tax. 15% to the world’s largest multinational companies All of them. In fact, what Zucman proposes follows a model similar to this measure.

In February, the Brazilian G-20 presidency invited Zucman to explain to finance ministers how to improve fiscal progressivity. Countries from around the world thus asked him for a report analyzing the feasibility of his proposal to tax billionaires around the world. The economist explained during the presentation of the report: “In less than four months, There are already several countries that support this idea“This will be the case of Spain, France, Brazil, South Africa, Colombia and Belgium.

Added to this is that not only has wealth become concentrated in fewer hands that contribute less than before, but there are still crises that make it difficult to identify and tax these rich people. First, because it is “easy” to change residence from one country to another with less tax pressure or to a place where this rule does not apply. In turn, because there is Gaps in international information exchange On property owners. This could however be supplemented with country-by-country reports that add details about effective property owners, whose wealth comes from their participation in larger groups.