Global Billionaire Tax Could Yield $250 Billion Annually, Study Says  

• The EU Tax Observatory has proposed the introduction of a global minimum tax on billionaires as part of international efforts to combat tax evasion. This tax could potentially generate $250 billion annually.
• Billionaires often pay lower effective personal taxes compared to individuals with more modest means, primarily because they can place their wealth in shell companies, shielding it from income tax. This practice is seen as undermining the sustainability of tax systems and public support for taxation.
• Rising wealth inequality in some countries has led to calls for the wealthiest individuals to bear a larger share of the tax burden. This is driven by factors such as ageing populations, the need for financing climate transition and addressing COVID-related debt.
• The text mentions successful international initiatives to reduce tax evasion, such as the reduction of offshore tax havens through the automatic sharing of account information and the establishment of a global minimum corporate tax rate of 15% for multinational companies. The EU Tax Observatory suggests that similar efforts should be applied to billionaires, even if it requires a "coalition of willing countries" to lead the way.

(Source: Reuters)