G20 Pledges to Tax Super-rich

The G20 nations have agreed to work together to tax the super-rich but have not reached an agreement on a global tax system, according to a declaration issued at the end of a meeting of finance ministers in Rio de Janeiro.

“With full respect for tax sovereignty, we will seek to engage cooperatively to ensure that high net worth individuals are effectively taxed,” said the declaration from Brazil, which holds the rotating presidency of the group.

“Inequality of wealth and income undermines economic growth and social cohesion and exacerbates social vulnerabilities,” the ministers added in their declaration.

The declaration called for “effective, fair and progressive tax policies.”

“It is important, from a moral point of view, that the 20 richest countries see that we have a problem of progressive taxation of the poor, not the rich,” said Brazilian Finance Minister Fernando Haddad.

International Monetary Fund Managing Director Kristalina Georgieva welcomed the G20 declaration in favor of “fiscal justice” on Friday, calling it “timely and welcome.”

“The G20 ministers’ shared vision on progressive taxation is timely and welcome, as the need to replenish fiscal buffers while meeting social and development needs involves difficult decisions in many countries,” Georgieva said in a statement.

“Promoting fiscal justice contributes to the social acceptance of these decisions,” she added.