US rejects plan for G20 deal to tax super-rich

AFP | Rio De Janeiro

The Daily Tribune - www.newsofbahrain.com

The United States sees no need to negotiate an international agreement on taxing the super-wealthy, US Treasury Secretary Janet Yellen said yesterday, highlighting divisions on a plan that is top of the agenda at a G20 finance ministers’ meeting in Rio de Janeiro.

Taxing the ultra-rich is a key priority of Brazil’s leftist president, Luiz Inacio Lula da Silva, who this year heads the G20 grouping of the world’s major economies, the European Union and African Union.

“Tax policy is very difficult to coordinate globally,” Yellen told a press conference in Rio de Janeiro, ahead of an evening meeting between finance ministers to discuss the topic. “We don’t see a need or really think it’s desirable to try to negotiate a global agreement on that. We think that all countries should make sure that their taxation systems are fair and progressive.”

Yellen said Washington was “strongly supportive of progressive taxation, and making sure that very wealthy, high-income individuals pay their fair share.” She highlighted policies proposed by US President Joe Biden, such as a billionaires’ tax, which she described as “a very worthwhile initiative.”

Progressive taxation

“It makes sense for most countries to take this approach of progressive taxation.” Brazil’s search for a global agreement on taxing the richest of the rich is backed by France, Spain, South Africa, Colombia and the African Union. “Some individuals control more resources than entire countries,” Lula said Wednesday at the launch of an initiative to fight world hunger, another project topping his G20 I