Today, the Socialists and Democrats in the European Parliament are calling on the G20 leaders* to agree on an ambitious roadmap for a minimum tax on the super-rich. At the initiative of the Brazilian Presidency of the G20, a report produced by the EU Tax Observatory proposed a 2% minimum tax on the wealth of the world's billionaires, which would generate $200 to $250 billion in revenue per year.

The S&Ds have long defended fair taxation as a fundamental tool to halt the ever-increasing concentration of wealth at the top and to achieve a fairer and more sustainable Europe. Ahead of this new mandate, our Group has been calling for an EU initiative(opens in a new tab) to support the implementation of a wealth tax in member states to partly finance EU social and climate-friendly initiatives, as a new own resource to strengthen the EU budget.

Gabriele Bischoff, S&D vice-president for sustainable economy and social Europe and single market, said:

“Today, workers’ income remains one of the main sources of public finance in the EU, as it represents 51.4% of GDP, while revenue from taxes on capital represents only 8.5%. This fuels increasingly unfair and unsustainable wealth gaps across our societies.

“The cost of living is one of our citizens’ main worries. Accessing education, heating our houses and ensuring decent and affordable housing should be everyone’s right and not just for the privileged few. A global minimum tax on billionaires would be crucial for governments to raise important revenues to provide public goods, address inequalities and finance the climate transition.

“Fair taxation is key to securing the future that our citizens deserve.”

Jonás Fernández, S&D MEP and spokesperson for economic and monetary affairs, said:

“We welcome the initiative of the Brazilian Presidency of the G20 to prioritise discussions around global wealth taxation for both economic and social reasons. Measures agreed at international level can apply tax justice equally to all citizens – not only to those who are not rich enough – and can put an end to decades of tax evasion and avoidance by the super-rich. A minimum tax agreed at global level would reduce opportunities for billionaires to easily move their money and assets across jurisdictions avoiding proper taxation.

“The concentration of wealth of a few is a global problem that has deeply undermined social welfare and our democracies. We must ensure that the wealthiest pay their fair share, thus promoting a fairer economy and more equal society. A move towards fair taxation, where citizens contribute according to their income and wealth, is the best way to uphold the principle of equality between all Europeans, thus avoiding a sense of inequality among citizens.”

*The next G20 summit is expected to take place in Rio de Janeiro, Brazil, on 18-19 November 2024.