Global push for a minimum tax on the ultra-rich grows as a tool against inequality
On the sidelines of a G20 finance ministers and central bank governors meeting in Sao Paulo, Brazil urged a worldwide shift toward a minimum tax on the ultra-wealthy as a central instrument to confront stark global inequality. Finance Minister Fernando Haddad insisted that unified action could compel a small circle of individuals to contribute more to their societies and to sustainable development on a planetary scale. He framed coordinated action as a pathway to channel wealth into essential public goods and shared progress, aligning with the summit’s broader ambitions.
The Lula da Silva government steered the G20 through 2024, with plans to broaden international influence while prioritizing poverty reduction, governance reforms, global tax policy, and climate action. Haddad laid out this vision during a session focused on fiscal fairness and social inclusion, arguing that a coordinated minimum global tax on wealth could become a cornerstone for international tax cooperation.
He defended a fair and progressive international tax system by citing Brazil’s recent tax reforms as a proof of concept. In December, Brazil’s Congress approved measures reducing the tax on basic foods to zero and introducing a tax on wealthy investment funds. The reform boosted state revenue, adding roughly 830 million dollars to public coffers in a single year. Haddad noted that while countries can act independently in the short term, enduring solutions for taxing large fortunes fairly depend on international cooperation. He welcomed broad international support for deeper fiscal cooperation under an UN-backed framework and highlighted a growing consensus among nations to advance such cooperation.
Earlier in the gathering, French Economy Minister Bruno Le Maire spoke about laying the groundwork for a new international tax system that would be more efficient and just than the current one. The proposed model rests on three pillars: taxation of non-physical rents such as digital income; corporate taxation aligned with market realities; and a minimum tax on individuals. Le Maire noted that France has already established the legal foundations for the first two pillars, with the non-physical income tax starting in 2024 and corporate taxation planned for 2025. He estimated these measures could generate about 1.5 billion euros in additional revenue annually.
Norway was represented by Finance Minister Trygve Vedum, who supported Brazil’s proposal. The Nordic nation, invited to the G20 summit, argued that a genuinely robust welfare system requires broad participation, including the super-rich. Vedum viewed the OECD’s minimum tax on large technology firms as a significant victory and signaled that Norway is actively moving to finalize Pillar 1, which seeks to allocate tax rights over multinational profits across borders. He warned that some Norwegian billionaires have relocated to countries like Switzerland, underscoring the global incentive to move wealth. A unified tax framework, he suggested, would reduce such relocations and lessen the appeal of capital flight tied to high net worth taxation.
The Sao Paulo discussions also explored strategies to combat tax avoidance and evasion. Haddad acknowledged progress achieved through OECD efforts and recent EU Fiscal Observatory studies showing that even billionaires often reduce their effective tax rates through strategic planning. While recognizing gains, he warned that the gap remains substantial and called for ongoing reforms grounded in reliable data. The Brazilian minister invited peers to consider how best to structure future debates around data-driven outcomes and to ensure measures gain broad international support.
As talks continued, the need for a practical timeline became evident. Final decisions on possible measures were tentatively set to be revisited by the end of July when Rio de Janeiro hosts another G20 finance ministers meeting. Haddad underscored the importance of balancing ambition with realism, promising a document that is both prudent and aspirational, reflecting the legitimate goals of participant countries. The opening session had already set a collaborative tone, with Le Maire expressing optimism about a more coherent, globally fair tax framework that could begin delivering tangible revenue gains in the near term.
In parallel, Norwegian officials reiterated the shared objective of ensuring global tax rules are fair and broadly applied. Vedum highlighted the broader view of a tax regime that keeps pace with digital-age economics and the globalization of corporate profits. The discussions conveyed a common belief among participants: only through genuine international cooperation can the wealthiest individuals contribute their fair share to finance social protection systems, infrastructure, and climate resilience for all.
Throughout the meetings, the calls for a transparent, universally applicable framework that respects national sovereignty while enabling a level playing field for businesses and households alike were strong. The overarching aim remains clear: to curb wealth-based inequality by strengthening fiscal capacity and enabling sustainable development across nations. The path forward will require sustained negotiation, credible data, and a shared commitment to tax justice that transcends borders. [Source: OECD and EU Fiscal Observatory summaries; official statements from G20 meetings]