For the first time, G20 finance leaders have pledged to cooperate on taxing the world’s largest fortunes, despite disagreements on the best forum for advancing this agenda. Finance ministers and central bankers from the G20 major economies agreed to reference fair taxation of “ultra-high-net-worth individuals” in their joint communique and a separate declaration on international tax cooperation.
However, debates have emerged on whether to pursue this initiative through the United Nations or the Organization for Economic Cooperation and Development (OECD). U.S. Treasury Secretary Janet Yellen advocates for the OECD, citing its expertise and progress in global tax negotiations. Conversely, some developing nations and advocates, like Nobel laureate Joseph Stiglitz, argue that the UN is a more democratic platform for such discussions.
Brazilian Finance Ministry official Guilherme Mello highlighted the importance of both forums, emphasizing that ongoing dialogue on effectively taxing the super-rich is a step forward.