2023-10-24 05:20:52
European Union tax experts estimate that Implementing a minimum tax on the wealth of billionaires equivalent to 2% of their wealth would combat tax evasion and would generate nearly 250,000 million dollars – about 235,000 million euros – from less than 3,000 individuals.
The experts who have prepared the ‘Global Tax Evasion 2024’ report argue that the number of taxpayers affected by their proposal is very small, and the tax rate for these taxpayers (2%) would continue to be very modest, since by comparison, the The wealth of the world’s billionaires has grown by 7% annually on average since 1995 (without taking inflation into account).
As argued in the report, Billionaires around the world have very low effective tax rates, between 0% and 0.5% of their wealth. In a country like the United States, the effective tax rate for billionaires is around 0.5%, while in a country like France this is closer to 0%.
If expressed as a fraction of income and taking into account all taxes paid at all levels of government (including corporate taxes, experts point out consumption taxes, payroll taxes, etc.), Billionaires’ effective tax rates turn out to be significantly lower than those of all other population groups.
Other proposals to avoid evasion
In this context, Experts have proposed reforming the international agreement on the minimum corporate tax to implement a rate of 25% and eliminate legal loopholes that encourage tax competition.
They also propose introducing mechanisms to tax wealthy people who have resided for a long time in a country and decide to move to another with low taxation and apply unilateral measures to collect part of the fiscal deficit of multinational companies and billionaires in case the agreements fail. global agreements on these issues.
They also propose moving towards the creation of a Global Asset Registry to improve the fight against tax evasion and strengthen the application of economic substance and anti-abuse rules.
The experts who have prepared the report and who are part of the EU Fiscal Observatory are Annette Alstadsaeter, Sarah Godar, Panayiotis Nicolaides and Gabriel Zucman.
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