G20 nations reaffirm pledge to cooperate on taxing super-rich

WASHINGTON

Brazil's Finance Minister Fernando Haddad, left, speaks as Central Bank Governor Roberto Campos Neto listens during a G20 news conference at the World Bank/IMF Annual Meetings in Washington, Thursday, Oct. 24, 2024.

G20 finance ministers meeting in Washington have reaffirmed their desire to cooperate on taxing the super-rich, before a summit next month where taxes are expected to be a top priority.

"With full respect to tax sovereignty, we look forward to discussing potential areas of cooperation to ensure that ultra-high-net-worth individuals are effectively taxed," the G20 group of nations wrote in a communique after discussions during the International Monetary Fund and World Bank annual meetings.

"We will continue to work together towards a fairer, more inclusive, stable, and efficient international tax system fit for the 21st century, restating our commitment to tax transparency and fostering global dialogue on effective taxation, including of ultra-high-net-worth individuals," the communique added.

G20 members were unable to agree on the introduction of a global minimum tax on the super-rich earlier this year, as called for by Brazil, which holds the presidency of the forum this year.

But at a previous meeting of finance ministers in July, the G20 pledged to cooperate to ensure that the very wealthiest are taxed more heavily, in the name of fighting inequality.

Instead of creating a minimum tax on the wealthiest, which was supported by Brazil's left-wing president, Luiz Inacio Lula da Silva, a compromise was reached to encourage everyone to tax them more.

The G20 heads of state and government must give a final endorsement to the commitment at a forthcoming summit in Rio de Janeiro in mid-November, just after the upcoming U.S. presidential election.