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.
Observation: Any discussion around the introduction of a wealth tax as presented in the EU Tax Observatory blueprint would require a deep and holistic analysis of the broader taxation mix. Relevant topics to be considered could include the distributive effects of current personal income and inheritance taxes; how a wealth tax would
impact the total progressivity of a country’s tax system; the potential cross-border distribution effects; and the impact a wealth tax would have on the ability of companies to attract funding.