French economist Gabriel Zucman proposes a globally coordinated minimum tax on billionaires.
Individuals with over $1 billion in wealth would pay an annual tax of 2% on their wealth.
Rationale:
Current tax systems don't effectively tax billionaires, who often pay very low rates (0-0.5%).
Wealth inequality is growing rapidly, with the top 0.0001% seeing their wealth surge (13% of global GDP in 2024).
Progressive taxation is needed to fund public services, address climate change, and promote social cohesion.
Feasibility:
Recent progress in information sharing and the global minimum corporate tax (15%) show international cooperation is possible.
Support:
Brazil (current G20 president), France, Spain, and some other countries support the proposal.
While the US doesn't support a wealth levy, President Biden's proposed minimum income tax for the ultra-rich shows a similar intent.
Relevance for India:
India has seen a significant rise in wealth inequality, with the top 1% holding a large share (40.1% of wealth).
A "super tax" on the wealthy could help reduce inequality and fund social programs.
A 2% tax on India's top 162 wealthiest families could generate significant revenue.
Overall, Zucman's proposal aims to address wealth inequality and raise tax revenue through a coordinated global effort.
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