The EU is discussing the introduction of a global tax for billionaires

The European Union is talking about a global tax on billionaires. It can raise $250 billion a year.

Governments should open a new front in the global fight against tax evasion with a global minimum tax on billionaires who can raise $250 billion a year. Reuters writes about this in connection with a statement by the EU Tax Observatory.

If recovered, the amount would be equivalent to just 2% of the nearly $13 trillion owned by the world’s 2,700 billionaires, according to the Paris School of Economics research group.

Currently, billionaires’ effective personal taxes are often lower than those paid by other taxpayers with modest means, the group’s 2024 Tax Avoidance Report found. This is because billionaires can keep their wealth in shell companies, protecting them from income taxes.

“In our view, it is difficult to justify because it can support the sustainability of tax systems and the social acceptance of taxes,” said Tax Observatory Director Gabriel Zucman.

The Observatory estimates that the personal tax of billionaires is about 0.5%, and in France it is zero.

Growing wealth inequality in some countries is prompting calls for the wealthiest citizens to shoulder a greater tax burden as governments try to combat aging populations, huge financial demands from climate change and debt from COVID-19, the agency said.

Let’s remember that Russian oligarchs, under pressure from international sanctions, withdrew tens of billions of assets from Europe after Russia’s full-scale invasion of Ukraine.

The group of oligarch companies does not pay taxes for 108 million – BEB

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