• US Treasury Secretary Janet Yellen announced that the United States opposes the G20 proposal to implement a global tax on the super-rich, emphasizing that tax policy should remain a national responsibility.
• The plan to tax ultra-wealthy individuals is a primary agenda item at the G20 finance ministers’ meeting in Rio de Janeiro, strongly supported by Brazil’s President Luiz Inacio Lula da Silva.
• Yellen reiterated that the US favors progressive taxation at the national level, highlighting President Joe Biden’s proposed billionaires’ tax as a key initiative.

The United States does not see the necessity for an international agreement on taxing the super-wealthy, US Treasury Secretary Janet Yellen stated last Thursday, emphasizing differences on a key issue at the G20 finance ministers’ meeting in Rio de Janeiro.

Taxing the ultra-rich is a significant priority for Brazil’s leftist president, Luiz Inacio Lula da Silva, who leads the G20 this year, encompassing the world’s major economies, the European Union, and the African Union.

“Coordinating tax policy on a global scale is very challenging,” Yellen remarked at a press conference in Rio de Janeiro, ahead of an evening meeting of finance ministers to discuss the matter.

“We don’t see the need or find it desirable to negotiate a global agreement on this issue. We believe each country should ensure its taxation system is fair and progressive.”

Yellen affirmed Washington’s strong support for progressive taxation, ensuring that very wealthy, high-income individuals pay their fair share.

She pointed to 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 adopt this approach of progressive taxation,” Yellen added.