Global tax on billionaires could generate nearly $250 billion in revenue

The EU may introduce a tax on the super-rich; it could bring in up to $250 billion a year. This is stated in a study by the EU Tax Observatory, which is based at the Paris School of Economics, writes Reuters.

It is clarified that levying a minimum income tax of 2,700 billionaires around the world in the amount of 2% could bring in about $250 billion annually.

The EU Tax Observatory noted that billionaires often receive much less tax money compared to those with average incomes. They explained that this is due to the ability to store money in shell companies that protect from income taxes. In particular, in the US, billionaires pay a tax of 0.5%, and in France, with traditionally high taxes, the income of the ultra-rich is taxed at about 0%.

According to calculations by the EU Tax Observatory, the automatic exchange of information, which was launched in 2018, has reduced the amount of funds held offshore by three times. In 2021, an agreement was signed between 140 countries that limited the ability of multinational companies to save on tax deductions by fixing profits in low-tax countries. As a result, the global corporate tax floor was set at 15%. According to Tax Observatory Director Gabriel Zucman, a similar scheme could be applied to billionaires.