G20 - Finance Ministry rejects international billion-dollar tax
The FDP-led Federal Finance Ministry rejects the tax for billionaires discussed at the G20 level. "We do not consider the idea of a global minimum wealth tax to be effective," sources in the ministry say. Internationally, the idea proposed by this year's G20 presidency, Brazil, is not consensus-building. Therefore, the topic will not be specifically addressed at the meeting of the finance ministers of leading industrial and emerging countries in this week in Rio de Janeiro.
Instead, the Ministry advocates for stronger measures against asset concealment and tax evasion. "This must be combated transnationally," it was stated.
Brazil's concept provides that billionaires should pay at least two percent of their wealth annually to their home country. This could lead to revenues of up to 250 billion Dollars, which could be used for the fight against hunger and conflicts, pandemic preparedness, and climate protection. Development Minister Svenja Schulze (SPD) has publicly expressed her support for the idea.
The billionaire tax is not the only contentious issue that should be excluded from the final document of the Finance Ministers' Meeting. The differing assessments of the G20 countries regarding the Russian war against Ukraine and the Middle East conflict should not appear in the communiqué, but only in a separate paper of the host country. Since the beginning of the Ukraine war, no final declarations have been achieved due to the fact that Russia is a member of the G20 and has rejected any mention of the war.
Germany will be represented at the meeting in Brazil by Finance State Secretary Heiko Thoms. Finance Minister Christian Lindner (FDP) does not attend.
- Despite Germany's stance, the proposal for a global minimum wealth tax originated from this year's G20 presidency, which is held by Brazil.
- The Federal Finance Ministry, led by the FDP, believes that stronger measures against asset concealment and tax evasion should be prioritized rather than focusing on a billionaire tax.
- Its German counterpart, Germany, is also participating in the Finance Ministers' Meeting in Rio de Janeiro, represented by Finance State Secretary Heiko Thoms, while Finance Minister Christian Lindner from the FDP is absent.
- The Federal government in Berlin shares similar views with other G20 members, as they believe that combating tax evasion should be addressed internationally rather than implementing a billionaire tax.
- G20 countries have various perspectives on contentious issues like the Russian war against Ukraine and the Middle East conflict, and these differing assessments might only appear in a separate paper from the host country, not in the final communiqué.
