Brazil's controversial global billionaires' tax plan pushed

G20 finance chiefs have pushed the discussions on Brazil's global billionaires tax plan to future summits. After a contentious debate this week in Rio de Janeiro, Group of twenty finance chiefs have pledged in a draft communiqué to keep discussing the proposal for a global wealth tax.

The statement promises to keep talking about ‘dialogue on fair and progressive taxation, including on ultra-high net worth individuals.’ The 2 per cent minimum tax on billionaires is what Brazil's president has used to highlight his country's achievements this year. But, the G20 pushback signals a kick down the road for those discussions.

In a revised version, Brazil successfully advocated for the language's inclusion after the first document failed to do so. It now states nations would strive for a ‘fairer, more stable and efficient international tax system fit for the 21st century.’ Brazil's Lula has advocated the tax as a possible means of financing international efforts to combat hunger and climate change. However, other countries, like the United States, have questioned its feasibility.

US Treasury Secretary Janet Yellen said, ‘Tax policy is very difficult to coordinate globally, and we don't see the need or really think it's desirable to try to negotiate a global agreement on that.’

Despite the broader pushback, Brazil's minister of finance, Fernando Haddad, praised the commitment to future discussions. He also assured that the final communiqué would be ‘historic’ for addressing the issue of taxes on the ultra-rich.

According to Fernando, the G20 in Brazil would go down in history as a watershed moment when tax equity was finally discussed. The draft communique also acknowledges the need for more transparency between developing nations and their wealthier creditors.