RIO DE JANEIRO: The United States sees no need to negotiate an international agreement on taxing the super-wealthy, Treasury Secretary Janet Yellen said Thursday on the sideline of a G20 finance ministers’ meeting.
The topic is a key priority of Brazil’s leftist president, Luiz Inacio Lula da Silva, who this year heads the grouping of the world’s major economies, the European Union and African Union.
Yellen’s remarks highlighted the divisions among G20 members on the issue.
“Tax policy is very difficult to coordinate globally,” Yellen told a press conference in Rio de Janeiro.
“We don’t see a need or really think it’s desirable to try to negotiate a global agreement on that. We think that all countries should make sure that their taxation systems are fair and progressive.”
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Yellen said Washington was “strongly supportive of progressive taxation, and making sure that very wealthy high income individuals pay their fair share.”
She highlighted policies proposed by US President Joe Biden, such as a billionaires’ tax, which she described as “a very worthwhile initiative.”
“It makes sense for most countries to take this approach of progressive taxation.”
Brazil’s search for a global agreement on taxing the richest of the rich is backed by France, Spain, South Africa, Colombia and the African Union.
The meeting of finance ministers in Rio opened with a session on the global economy, as inflation slows in many parts of the world after a surge fuelled by the war in Ukraine and other factors.
On Friday, the ministers will tackle the financing of the climate transition and debt in their last meeting before a G20 summit on November 18 and 19.
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