What plans have been discussed regarding the world’s billionaires?
The G20 is thinking about a new rule. They want all the billionaires worldwide to pay a certain amount of tax. They don't want the super-rich to pay less tax than everyone else. At a G20 meeting in São Paulo, Brazil, this was discussed.
Fernando Haddad, the finance minister of Brazil, wants this rule to happen. Brazil is also the current president of the G20. France also thinks it's a good idea.
Do billionaires pay more taxes than ordinary citizens?
The European Union (EU) Tax Observatory found that rich people in big countries pay way less income tax than regular people.
Many billionaires figure out ways not to pay taxes or move to places where taxes are lower. This makes it hard for governments to get the money they need to run a country.
Right now, as rich people are finding ways to pay less tax than regular folks, the proposal wants to stop this. The plan is to ensure everyone pays their fair share of taxes to help their countries. A report from the EU Tax Observatory suggested that taxing billionaires at a small rate could bring in lots of money.
Governments could use this money to make their countries better.
How soon can this policy be implemented?
Putting a global minimum tax on billionaires might be tough. First, all the countries in the G20 need to agree on this rule, which could take a while. Also, they have to talk about all the specific details needed to make this tax rule work.
Do you think this tax rule will help countries grow? Let us know in the comments.
