G20 in Rio

At the G20 meeting in Rio de Janeiro, the United States rejected Brazil's proposal for a global tax on the super-rich, which suggested a 2% income tax on individuals with over $1 billion in assets. U.S. Treasury Secretary Janet Yellen emphasized that tax policy is hard to coordinate internationally and stated that the U.S. does not see the need for a global agreement, despite supporting progressive taxation. Brazilian Finance Minister Fernando Haddad expressed optimism about the discussions, noting that the final declaration would mention the proposal, marking a first step towards addressing wealth inequality. The G20 meeting also highlighted the growing divide among member countries on tax policy, with support from nations like France and South Africa. Economists argue that a coordinated effort to tax billionaires could reduce the appeal of tax havens, where the ultra-wealthy currently pay minimal taxes. Overall, the discussions reflect ongoing tensions between the desire for global tax reform and the sovereignty of individual states over their fiscal policies.