G20 nations have agreed to work together to make the superrich pay their taxes, but stopped short of a broader agreement.
Finance ministers from the G20 nations agreed to work toward effectivelytaxing the superrich, according to a statement adopted Friday after a meeting in Rio de Janeiro.
“With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” the statement said.
“Wealth and income inequalities are undermining economic growth and social cohesion and aggravating social vulnerabilities,” it added.
The sensitive issue of cracking down on tax-dodging billionaires dominated the two-day meeting in the Brazilian city that will host a G20 summit in November.
International Monetary Fund chief Kristalina Georgieva welcomed the G20’s stance on “tax fairness,” calling the decision to cooperate on taxing the ultrarich “timely and welcome.”
The problem, as ever, is game theory. All you need is ONE bad actor to spoil the entire effort. See the panama papers.
If one country has laws that allow billionaires to claim residence or establish a shell corporation and have lower or no income tax and these bastards will all jump at the chance and that tax money will slip through the fingers of everyone playing by the rules.
Laws are great. But what we need is real enforcement by agencies with real teeth. Ban shell corps. Tax overseas transfers aggressively. Treat white collar crime like a real crime with severe penalties.
True, but that’s why groups like G20 exist. They can agree to act as a block. If a “bad actor” decided they wanted to do something like you suggest, the G20 countries could agree on sanctions against that country.
Also, “because someone will figure out a way around it” is not a good reason not to enact a law. Just a reason to make one better.
Oh certainly. I wasn’t suggesting not taking steps to improve the situation. But I’m advocating for each country (or perhaps even the G20 itself) establishing a similar set of rules, penalties, and aggressive enforcement. Anything else will leave loopholes and be a half-measure.
Incorrect, the US could unilaterally implement real tax reform and simply bar folks from doing business domestically (or having access to domestic services) and the rich assholes would start paying up really quick… then other countries would have the choice of leaving money on the table and being a tax haven or getting free money.
The real fucking problem is political donations. Countries make less revenue but politicians are getting fat stacks.
