Former presidents and prime ministers have sent an open letter to the leaders of the world’s 20 largest economies, advocating for a global tax on billionaires. They describe this as a unique political opportunity.
The initiative follows Brazil’s G20 presidency, which proposed the tax in February. The goal is to garner support for a declaration at the G20 finance ministers and central bank governors meeting later this month in Rio de Janeiro.
The letter, signed by 19 members of the Club de Madrid, a forum of former leaders, commends U.S. President Joe Biden’s billionaire income tax proposal and calls for international cooperation to combat tax evasion by the wealthy.
“A global deal to tax the ultra-rich would be a shot in the arm for multilateralism: proving that governments can come together for the common good,” the letter states.
Signatories include Chile’s Michelle Bachelet, Sweden’s Stefan Lofven, Spain’s Felipe Gonzalez and Jose Luis Rodriguez Zapatero, France’s Dominique de Villepin, Canada’s Kim Campbell, Australia’s Julia Gillard, and South Korea’s Han Seung-soo.
Brazil’s proposal, designed by French economist Gabriel Zucman from the independent EU Tax Observatory, suggests an annual 2% levy on fortunes exceeding $1 billion. This could generate up to $250 billion annually from around 3,000 individuals.
The recent G7 communiqué indicated continued collaboration with Brazil’s G20 presidency to enhance international cooperation and support progressive taxation. However, some countries have expressed reservations.
In May, German Finance Minister Christian Lindner voiced skepticism about new global tax components, while U.S. Treasury Secretary Janet Yellen said the U.S. could not support negotiations involving the redistribution of tax proceeds among countries.
Supporters of the initiative include France, Spain, Colombia, Belgium, the African Union, and South Africa, which will assume the G20 presidency next year.