The G20 countries have agreed on effective taxation of the ultra-rich. Switzerland is of course on board.
The states would rather cooperate than compete on taxation.
This became clear at the weekend, as the G20 finance ministers agreed on a joint declaration after a long struggle.
Good cause as a pretext
“While fully respecting fiscal sovereignty, we will endeavor to work together to ensure that very wealthy individuals are effectively taxed,” said the final declaration of the finance ministers of the leading industrialized countries and emerging ones in Rio de Janeiro, Brazil.
As is usually the case, the money is to be used for a good cause.
This time, the treasurers of those countries have the fight against world hunger, poverty and inequality in mind.
Tax of 2 percent per year
Observers described the declaration as a significant step forward because it symbolizes a union of states and the super-rich can no longer avoid the tax.
The concept stipulates that billionaires must pay at least 2 percent of their wealth to their home state every year.
All gone in half a century
The states hope that this will generate tax revenue of 250 billion dollars, which will be used to fight hunger in the world, protect the climate and prevent pandemics, for example.
The declaration states that the countries want to work towards a fairer and more progressive tax system.
However, if you look at the planned wealth tax, after 50 years there is nothing left of the original wealth of the ultra-rich.
Stoffel and Jordan in Rio
Practically only the ‘freedom fighter’ USA was against it. France, Spain and South Africa, for example, were expressly in favor of the concept, as the media reported almost unnoticed.
Switzerland was also involved.
Friendly paraphrase
The discussion points also include a possible declaration on the continuation of international cooperation in the area of taxation and the implementation of the new rules on the taxation of large international companies, the State Secretariat for International Financial Matters (SIF) explained in a veiled manner.
The G20 met in Rio de Janeiro. (Image: PD)
If the Swiss people had known that it was all about taxing the super-rich, they would certainly have protested in advance.
Cartel against competition
In Switzerland, the debate about expropriating the rich is currently in full swing. The initiative of the Swiss Young Socialists (Juso) on inheritance tax calls for a levy of 50 percent on assets over 50 million Swiss francs.
Politicians are using a cartel of states to leverage out competition, so that there are fewer and fewer opportunities for the Blochers, Kühnes & Co. to escape internationally.
The best example of this is the OECD minimum tax for companies, which Switzerland was one of the first countries to implement.
The USA is, of course, still hesitating. But now, private individuals are the next group being asked to pay.
29.07.2024/kut./ena.
