Thrilled to release this report commissioned by the Brazilian G20 Presidency today Just like we have a minimum tax on multinationals, we need a minimum tax on the world's super-rich—and it has become technically feasible 🧵with the main findings and proposalsOur tax systems do not effectively tax the wealthiest individuals today We know this thanks to pioneering research, often conducted in partnership with tax authorities, which shows a recurring pattern: All taxes included, the super-rich pay less than ordinary workersWhy? In a nutshell, because the income tax fails to effectively tax them By using holding companies, and other techniques, they can easily report little — or even no — taxable incomeThis leads to sizable loss of revenue for governments And if fuels inequality The wealth of global billionaires has increased from 3% of world GDP in 1987 to nearly 14% todayThe best way to address this failure would be with a common minimum standard Billionaires should pay in tax the equivalent of at least 2% of their wealth each year (instead of the ~0.3% they pay today) This would erase regressivity at the very top2% on billionaires is the baseline proposal, but the report also looks at different rates and thresholds The tax revenue gains for governments would be large Here's the revenue in billion $ per year for different scenarios:This international standard would not substitute for domestic progressive tax policies, instead it would support them That's because it would improve transparency about top-end wealth, reduce incentives to engage in tax avoidance, and constrain international tax competitionThe report goes in detail into the various implementation challenges: How to value wealth? How to ensure an effective taxation if some jurisdictions declined to implement this standard? How to maximize compliance by taxpayers?The big picture conclusion is that these issues deserve serious international discussion, but they have solutions Building on past progress in international coordination — the automatic exchange of bank information, the minimum tax on multinationals — and extending themThe goal of this blueprint is to offer a basis for political discussions—to start a conversation, not to end it It is for citizens to decide, through democratic deliberation and the vote, how taxation should be carried out I hope this report will contribute to this discussionI would like to thank the Brazilian G20 presidency for the opportunity to work on such an important issue The full report is here: Comments most welcome! /endPS: adding the short technical summary of the report The full report is available at the link above, and also here: Most grateful to the many people who made this possible 🙏

Thrilled to release this report commissioned by the Brazilian G20 Presidency today Just like we have a minimum tax on multinationals, we need a minimum tax on the world's super-rich—and it has become technically feasible 🧵with the main findings and proposals ... Our tax systems do not effectively tax the wealthiest individuals today We know this thanks to pioneering research, often conducted in partnership with tax authorities, which shows a recurring pattern: All taxes included, the super-rich pay less than ordinary workers ... Why? In a nutshell, because the income tax fails to effectively tax them By using holding companies, and other techniques, they can easily report little — or even no — taxable income ... This leads to sizable loss of revenue for governments And if fuels inequality The wealth of global billionaires has increased from 3% of world GDP in 1987 to nearly 14% today ... The best way to address this failure would be with a common minimum standard Billionaires should pay in tax the equivalent of at least 2% of their wealth each year (instead of the ~0.3% they pay today) This would erase regressivity at the very top ... 2% on billionaires is the baseline proposal, but the report also looks at different rates and thresholds The tax revenue gains for governments would be large Here's the revenue in billion $ per year for different scenarios: ... This international standard would not substitute for domestic progressive tax policies, instead it would support them That's because it would improve transparency about top-end wealth, reduce incentives to engage in tax avoidance, and constrain international tax competition ... The report goes in detail into the various implementation challenges: How to value wealth? How to ensure an effective taxation if some jurisdictions declined to implement this standard? How to maximize compliance by taxpayers? ... The big picture conclusion is that these issues deserve serious international discussion, but they have solutions Building on past progress in international coordination — the automatic exchange of bank information, the minimum tax on multinationals — and extending them ... The goal of this blueprint is to offer a basis for political discussions—to start a conversation, not to end it It is for citizens to decide, through democratic deliberation and the vote, how taxation should be carried out I hope this report will contribute to this discussion ... I would like to thank the Brazilian G20 presidency for the opportunity to work on such an important issue The full report is here: Comments most welcome! /end ... PS: adding the short technical summary of the report The full report is available at the link above, and also here: Most grateful to the many people who made this possible