G20 Leaders Urged to Tax Super-Rich to Achieve SDGs and Address Global Inequities

As part of its G20 Presidency, Brazil proposed a 2% tax on the super-rich, targeting approximately 3,000 individuals with assets exceeding $1 billion.

As leaders from the G20 nations, the African Union, and the European Union convene in Rio de Janeiro for the G20 Leaders’ Summit, two United Nations experts have issued a strong call for taxing the ultra-wealthy to fund critical global development goals. Their appeal comes as progress toward the Sustainable Development Goals (SDGs) remains alarmingly off-track, with 84% of targets unlikely to be met by 2030.

A Pathway to Poverty Eradication

The UN experts emphasized that even a modest redistribution of wealth could generate the resources required to tackle global poverty. They highlighted that a transfer of just 0.14% of global income could eradicate poverty by 2030. While applauding the launch of the Global Alliance Against Hunger and Poverty, they stressed that this initiative must be backed by substantial financial commitments.

Brazil’s Proposal and Its Setback

As part of its G20 Presidency, Brazil proposed a 2% tax on the super-rich, targeting approximately 3,000 individuals with assets exceeding $1 billion. This measure could generate $200-250 billion annually, offering a stable and substantial source of revenue for global development. However, resistance from certain developed nations pushed the proposal aside. Instead, G20 finance ministers agreed only to “engage cooperatively” to ensure effective taxation of ultra-high-net-worth individuals.

The Human Rights Dimension of Taxation

The experts underscored that taxation is inherently tied to human rights. Decisions about who pays taxes, how much they pay, and how revenues are spent directly impact the realization of fundamental human rights worldwide. Wealth accumulation by the top 10% is often linked to systemic exploitation of people and the planet. This group also disproportionately contributes to the climate crisis, emitting up to 80% of global emissions through their assets.

Taxing the ultra-wealthy, they argued, is a matter of fairness and global justice. It would not only help address inequality but also serve as compensation for the environmental damage caused by their wealth-generating activities.

Moving Toward International Tax Cooperation

In September 2024, UN member states adopted the Pact for the Future, committing to explore international cooperation on taxing high-net-worth individuals. The upcoming 4th International Conference on Financing for Development and negotiations on the UN Framework Convention on International Tax Cooperation offer critical opportunities to advance this agenda.

Innovative Financing for the SDGs

The experts called for innovative financing mechanisms that are sustainable, equitable, and free of debt burdens for developing countries. Without such measures, the world risks failing the SDGs and exacerbating existing inequalities.

As the G20 deliberates, the call to tax the super-rich serves as a pivotal test of their commitment to fairness, environmental sustainability, and human rights. The world’s most powerful nations are being urged to lead by example and take bold action to ensure a just and sustainable future.