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The U.S. has taken a firm stance against a proposed global wealth tax on billionaires, as announced Monday by Treasury Secretary Janet Yellen .
This idea, championed by Brazil, France and other nations, aims to reduce economic inequality by targeting the global billionaires. Yellen emphasized that while the U.S.
supports progressive taxation, it cannot back a worldwide initiative of this nature, as reported by the Wall Street Journal . “We're not supportive of a process to try to achieve that. That's something we can't sign on to," she said.
As the leader of the Group of 20 major economies, Brazil has urged the group to develop a unified approach to taxing extremely wealthy individuals who often relocate their funds to low-tax jurisdictions. The goal is to create a system similar to the global minimum tax on corporations, agreed upon by roughly 140 countries in 2021, though the rollout has faced significant obstacles, particularly in the U.S.
Although the Biden administration has proposed significant tax increases for high-income Americans, it has avoided advocating for a wealth tax, which involves collecting a portion of an individual’s net worth annually. Instead, President Joe Biden has proposed a plan that would require Americans with a net worth exceeding $100 million to pay a 25% tax on their total earnings each year, including unrealized capital gains. Yellen made it clear the U.
S. would not endorse discussions on a global wealth tax. She is s.
