FX.co ★ US unwilling to impose global levy on its billionaires

Remarkably, the US opposes a global tax on the wealth of billionaires. At present, the US authorities are not ready to introduce the tax.

The Wall Street Journal (WSJ) reported that G20 major economies, including France, Spain, and Brazil, advocate for this internationally recognized practice. The annual payment should be no more than 2% of their total wealth. However, the US argued against the proposal.

Treasury Secretary Janet Yellen said that the White House rejected the idea and refused to participate in the talks on imposing the global levy on the ultra-rich. She delivered this message at the summit of finance ministers of the G20 countries.

According to the WSJ, Janet Yellen is scheduled to meet with the finance ministers of the G7 countries at the end of this week to discuss this issue. However, the US Treasury Secretary has a negative attitude towards this idea. “This is something we cannot sign up for,” she said. According to her, the White House “believes in progressive taxation,” but is not ready to support “a kind of general global mechanism for taxing billionaires with income redistribution.”

Earlier, authorities in Brazil, which chairs the G20 this year, called on the group of nations to develop a common approach to taxing the super-rich. This initiative aims to collect more taxes from wealthy citizens. This measure is expected to prevent the rich from dodging taxes by declaring profits offshore.

Policymakers from Spain, Germany, and South Africa were involved in the discussion of this legislation. Officials admit that billionaires would have to pay annual taxes of at least 2% of their total wealth. This will pump up tax revenues and reduce the income gap between the poorest and the super-rich.

Currently, most countries apply their income taxes depending on where the taxpayer lives. In particular, US citizens pay income taxes even when living outside the country. Under such conditions, it is difficult for Americans to evade taxation by transferring assets and income abroad, the WSJ emphasizes.