US Treasury Secretary Janet Yellen Speaks Out Against International Agreement on Wealth Tax
On July 25, US Treasury Secretary Janet Yellen rejected the notion of a global agreement to tax the ultra-wealthy during a press conference at the Group of 20 (G-20) finance ministers’ meeting in Rio de Janeiro. Yellen emphasized that while the US supports progressive taxation domestically, she sees no need to create a worldwide tax framework for billionaires, arguing that such policy coordination is challenging on a global scale. She highlighted US President Biden’s billionaires’ tax as an example of a national initiative that aligns with progressive taxation values.
This stance contrasts with Brazil’s leftist president, Luiz Inacio Lula da Silva, who pushed for an international tax on billionaires, backed by several countries like France, Spain, and South Africa. Lula argued that the ultra-wealthy should pay their fair share, noting that their accumulation of wealth has far outpaced the economic capacity of some nations. However, Yellen’s comments underscored the US’s preference for countries to independently ensure fairness in their tax systems.
The debate on taxing the ultra-wealthy is part of broader discussions within the G-20, which also addresses topics like global inflation and climate financing. Despite differing views, Brazil’s presidency aims to release multiple statements from the G-20, including one on tax cooperation and another on geopolitical issues such as the ongoing conflicts in Ukraine and Gaza.
