The G20 nations agreed to work together to tax the richest people but failed to reach agreement on a global tax system, according to a declaration issued at the end of a meeting of finance ministers in Rio de Janeiro.
“With full respect for tax sovereignty, we will seek to engage collaboratively to ensure that high-net-worth individuals are taxed effectively,” said the declaration from Brazil, which holds the group’s rotating presidency.
“Inequality of wealth and income undermines economic growth and social cohesion and exacerbates social vulnerabilities,” the ministers added in their declaration.
The declaration called for “effective, fair and progressive tax policies.”
International Monetary Fund Managing Director Kristalina Georgieva welcomed the G20 declaration on Friday in support of “fiscal justice,” calling it “timely and welcome.”
“The G20 ministers’ shared vision for progressive taxation is timely and welcome, as the need to replenish fiscal buffers while meeting social and development needs involves difficult decisions in many countries,” Georgieva said in a statement. She added that "promoting tax justice contributes to the social acceptance of these decisions."
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