A proposed 2 percent tax targets the wealthiest individuals, aiming to adjust very low effective tax rates among the global super-rich. The plan contends that a small group carries an outsized share of wealth and faces minimal taxation on corporate gains and asset ownership.
In a recent report, an organization led by the French economist Gabriel Zucman—a figure closely associated with Nobel laureate Joseph Stiglitz—argues that billionaires often face tax rates near zero to a fraction of a percent on their net assets. This disparity is partly because many ultra-wealthy individuals employ structures such as holding entities and other pass-through vehicles to shelter or defer taxes on assets, including financial holdings, and to minimize taxation on dividends.
The study highlights that the wealth of this small billionaire cohort has continued to grow, with an average annual increase around 7 percent since 1995, helping to offset inflation and expand purchasing power.
Geographically, the tally of people with assets exceeding one billion dollars totals 2,756, amounting to almost 13 trillion in global assets. Among them, roughly 835 reside in North America, 499 in Europe, 838 in East Asia, and 260 in South and Southeast Asia. The remainder are distributed across South America, Russia and Central Asia, the Middle East and North Africa, and Sub-Saharan Africa.
The proposed 2 percent levy is projected to generate substantial revenue by region: North America could see around 72.3 billion dollars, South and Southeast Asia around 60.3 billion, and Europe about 42.3 billion. Critics note that current tax frameworks may be delivering lower actual corporate tax collections than expected, due to design flaws and loopholes that reduce observed receipts.
Observers suggest that even if corporate tax rules were enforced at higher, more effective rates, a broader collection would likely become possible. There is discussion about raising the minimum corporate tax rate to 25 percent and removing exemptions that enable aggressive tax planning, with the aim of expanding public revenue.
Ultimately, combining the billionaire tax with adjustments to how multinational profits are taxed could yield a substantial annual haul, potentially approaching the scale of hundreds of billions of dollars. Proponents argue that such revenue could support investments needed to address climate finance and development priorities in emerging economies.