According to Forbes, the United States is home to 813 billionaires with a combined net worth of $5.7 trillion.
At the upcoming G20 meeting in Brazil on Nov. 18, a proposal to increase taxes on the wealth of the world’s 3,000 billionaires will be a major topic of discussion.
The focus is on America’s ultra-wealthy individuals who are being accused of utilizing loopholes to evade paying their fair share of taxes.
Zucman’s research indicates that billionaires worldwide are paying an average tax rate of just 0.3 percent on their wealth.
Zucman stated, “The ultra-rich are exploiting loopholes and legal avenues to avoid paying their fair share in taxes.”
He proposed a supplementary tax to income tax, ensuring that billionaires pay a tax equivalent to at least 2 percent of their wealth annually.
Zucman emphasized, “When compared to the tax burdens faced by ordinary individuals worldwide, a 2 percent tax is relatively minor.”
In late July, G20 finance ministers pledged to collaborate to compel the ultra-wealthy to fulfill their tax obligations, but a comprehensive agreement was not reached.
The African Union and some European Union nations, particularly France and Spain, are spearheading the push for a global wealth tax on the majority of billionaires residing in the United States and China.
Forbes has identified 813 billionaires in the United States with a combined net worth of $5.7 trillion.
This group includes Elon Musk, Jeff Bezos, Mark Zuckerberg, Warren Buffett, and Bill Gates, among others, who are among the wealthiest individuals globally.
ProPublica, a nonprofit media outlet, obtained IRS data on the tax returns of numerous wealthy Americans, exposing how individuals like Bezos, Musk, Buffett, and Soros pay minimal income tax in contrast to their immense wealth.
According to the IRS records, the wealthiest individuals paid a total of $13.6 billion in federal income taxes over five years, despite their combined wealth increasing by $401 billion during the same period.
South African tax expert Johan du Plessis highlighted the global trend of burdening the middle class with high taxes while allowing the ultra-rich to exploit loopholes and avoid significant tax payments.
He explained, “In many countries, the rich continue to amass wealth through asset appreciation without being taxed on those gains until they are realized.”
Despite these disparities, there is ongoing debate about the fairness and effectiveness of tax laws in different countries and how they impact various income groups.
Overall, the issue of wealth taxation and equitable tax systems remains a significant topic of discussion on both national and international platforms.
In reality, the wealthiest individuals make more profit and pay less tax,” he said.
President Joe Biden has consistently advocated for higher taxes on the wealthiest Americans during his presidency.
Biden’s economic strategy for the 2022 election, before being replaced by Vice President Kamala Harris as the Democratic presidential candidate, emphasized a more progressive tax system.
A YouGov poll conducted in 2022 showed that a majority of Americans with assets over $1 million, excluding their homes, supported Biden’s tax proposals.
The poll, commissioned by Patriotic Millionaires, revealed that a significant portion of respondents viewed growing inequality as a threat to democracy.
While Janet Yellen stated at the G20 meeting in July that the U.S. opposed a global agreement on taxing billionaires, Vice President Harris has been less vocal on the issue since taking office.
The Tax Foundation noted that Harris’s policy statements indicate support for higher taxes on businesses and high earners.
However, the Tax Foundation warned that Harris’s proposed tax changes could have negative impacts on economic growth, wages, and employment.
Former President Donald Trump opposes tax increases on the wealthy, with his tax plans favoring the wealthiest Americans over lower earners.
The Joint Committee on Taxation estimated that extending Trump’s tax cuts would significantly increase the deficit over the next decade.
Other countries, such as China, India, and Russia, also have significant numbers of billionaires but have not signaled their stance on a global agreement to tax the super-rich.
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