The case
The EU Tax Observatory published a report on 25 June that was authored by the French economist Gabriel Zucman, as commissioned by the Brazilian presidency of the G20. The report provides a blueprint for a coordinated minimum tax on ultra-high net worth individuals (UHNWI) equal to 2% of their wealth. The report estimates that the tax could raise up to $250 billion annually if levied on billionaires, or up to $380 billion annually if levied on centimillionaires.
The commentary
The introduction of a wealth tax on high net worth individuals requires a thorough and holistic analysis of the broader tax mix. Taking into account the distributional effects of existing taxes, the overall progressivity of the tax system, potential cross-border effects and the impact on companies’ financing options, policymakers could decide on the potential benefits and challenges of introducing such a tax.
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