• About
  • Advertise
  • Privacy Policy
  • Contact
Friday, December 8, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Global Billionaire Tax to Yield US$250 billion Annually

October 23, 2023
Stephen M.CbyStephen M.C
in Economy
0
Global Billionaire Tax to Yield US$250 billion Annually

The EU Tax Observatory has stated in its report that governments should open a new front in the international clampdown on tax evasion with a global minimum tax on billionaires, which could raise US$250 billion annually.

The research group hosted at the Paris School of Economics noted that if levied, the sum would be equivalent to only 2% of the nearly US$13 trillion in wealth owned by the 2,700 billionaires globally.

Currently billionaires’ effective personal tax is often far less than what other taxpayers of more modest means pay because they can park wealth in shell companies sheltering them from income tax, the group said in its 2024 Global Tax Evasion Report.

RelatedPosts

IMF Sets Condition for Ghana to Access the 2nd $600m Tranche

Ghana Ranks 7th Most-Indebted Country to IMF As African Economies Reels Under Heavy Debt Impact

IFS Urges Government to Pursue Debt Forgiveness Amid Economic Crisis

“In our view, this is difficult to justify because it risks to undermine the sustainability of tax systems and the social acceptability of taxation,” the observatory’s director Gabriel Zucman said.

Billionaires’ personal tax in the United States is estimated to be close to 0.5% and as low as zero in otherwise high-tax France, the Observatory estimated.

Growing wealth inequality in some countries is fuelling calls for the richest citizens to bear more of the tax burden as public finances struggle to cope with aging populations, huge financing needs for climate transition and legacy COVID debt.

Meanwhile, U.S. President Joe Biden’s 2024 budget included plans for a 25% minimum tax on the wealthiest 0.01%, but that proposal has since fallen by the wayside with lawmakers in Washington preoccupied with government shutdown threats and looming funding deadlines.

Though a coordinated international push to tax billionaires could take years, the Observatory pointed to the example of governments’ success in all but ending bank secrecy and reducing opportunities for multinationals to shift profits to low-tax countries.

The 2018 launch of automatic sharing of account information has reduced the amount of wealth held in offshore tax havens by a factor of three, the observatory estimated.

A 2021 agreement between 140 countries will limit multinationals’ scope to reduce tax by booking profits in low-tax countries by setting a global 15% floor on corporate taxation from next year.

“Something that many people thought would be impossible, now we know can actually be done. The logical next step is to apply that logic to billionaires, and not only to multinational companies,” Zucman said.

Broad International Push for A Minimum Tax On Billionaires

In the absence of a broad international push for a minimum tax on billionaires, Zucman said a “coalition of willing countries” could unilaterally lead the way.

Although the end of banking secrecy and the corporate minimum tax have put an end to decades-long competition between countries on tax rates, numerous opportunities remain to reduce tax bills, the report said.

For example, the rich increasingly park wealth in real estate instead of offshore accounts while companies can exploit loopholes in the 15% corporate tax minimum.

Meanwhile, governments are increasingly competing for investment through subsidies even though that is less harmful to their tax bases than competing only on low tax rates, the Observatory said.

A global billionaire tax would likely lead to a redistribution of wealth from the ultra-rich to government coffers. This could be used to fund social programs, infrastructure projects, and other government initiatives. This redistribution could help reduce wealth inequality, which is a concern in many countries.

Moreover, critics argue that taxing billionaires heavily may discourage investment and entrepreneurship, as individuals may be less inclined to take on financial risks if a significant portion of their wealth is subject to taxation. However, proponents counter that the tax revenue could be reinvested in ways that benefit the economy, such as education and research.

With the world in crisis and the poverty keeps widening, a global billionaire tax could generate significant revenue for governments. This additional revenue could be used to reduce budget deficits, fund public services, and stimulate economic growth, especially if it is directed towards productive investments.

READ ALSO: The Cedi, Shilling Remain Steady As Most African Currencies Weaken

Tags: 2024 Global Tax Evasion ReportBillionaire TaxBudget deficitsEconomic GrowthGlobal Billionaire Tax to Yield US$250 billion Annually

Related Posts

IMF Sets Condition for Ghana to Access the 2nd $600m Tranche
Economy

IMF Sets Condition for Ghana to Access the 2nd $600m Tranche

December 8, 2023
Ghana Ranks 7th Most-Indebted Country to IMF As African Economies Reels Under Heavy Debt Impact
Economy

Ghana Ranks 7th Most-Indebted Country to IMF As African Economies Reels Under Heavy Debt Impact

December 8, 2023
IFS Urges Government to Pursue Debt Forgiveness Amid Economic Crisis
Economy

IFS Urges Government to Pursue Debt Forgiveness Amid Economic Crisis

December 7, 2023
Ghana's Tax Regime Trailing Behind Sub-Saharan Africa Average with a Score of 56
Economy

Ghana’s Tax Regime Trailing Behind Sub-Saharan Africa Average with a Score of 56

December 4, 2023
Ghana’s Remittance Flows Soar to an Impressive US$3.2 Billion
Economy

Ghana’s Remittance Flows Soar to an Impressive US$3.2 Billion

November 28, 2023
Owners of Closed  Forex Bureaus May Lose Licenses Forever- BoG
Economics

BoG Maintains 30% Monetary Policy Anticipating A Firm-rooted Downward Inflation

November 28, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Kennedy Agyapong Accused Me Of Killing Ebony – Nigel Gaisie

Next Post

Finance Minister Optimistic Of Ghana’s Economic Outlook

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Forestry Commission Promotes Government’s Forest Reservation Programs
General News

Forestry Commission Promotes Government’s Forest Reservation Programs

by Angeller AshongDecember 8, 2023
NDC Urged To Probe Energy Issues In Parliament
General News

ECG Pays Sunon Asogli USD 30m Out Of USD 60m Debt

by Stephen M.CDecember 8, 2023
AGI Backs Import Restrictions and Advocates for Value Chain Development
Vaultz Business

AGI Backs Import Restrictions and Advocates for Value Chain Development

by Stephen M.CDecember 8, 2023
Gazan Society On the Brink Of Full Blown Collapse
Asia

Gazan Society On the Brink Of Full Blown Collapse

by Comfort AmpomaaDecember 8, 2023
IMF Sets Condition for Ghana to Access the 2nd $600m Tranche
Economy

IMF Sets Condition for Ghana to Access the 2nd $600m Tranche

by Stephen M.CDecember 8, 2023
NDC Eulogizes Minority Caucus In Parliament For Voting Against 2024 Budget
News

NDC Eulogizes Minority Caucus In Parliament For Voting Against 2024 Budget

by Evans Junior OwuDecember 8, 2023
Forestry Commission Promotes Government’s Forest Reservation Programs
NDC Urged To Probe Energy Issues In Parliament
AGI Backs Import Restrictions and Advocates for Value Chain Development
Gazan Society On the Brink Of Full Blown Collapse
IMF Sets Condition for Ghana to Access the 2nd $600m Tranche
NDC Eulogizes Minority Caucus In Parliament For Voting Against 2024 Budget
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In