G20 countries have pledged to work together to tax the super-rich

G20 countries have agreed to work together to make the super-rich pay their taxes, AFP reported.
The agreement was reached during the meeting of the G20 finance ministers in Rio de Janeiro.
The initiative is a key priority for Brazilian President Luiz Inacio Lula da Silva, who this year heads the group, which includes the world's largest economies, the EU and the African Union.
"With full respect for tax sovereignty, we will seek to cooperate to ensure the effective taxation of ultra-high net worth individuals," the statement adopted at the meeting stated.
"Inequality in wealth and income undermines economic growth and social cohesion and deepens social vulnerability," the document added.
Brazilian Finance Minister Fernando Haddad said that "from a moral point of view, it is important that the twenty richest countries consider that we have a problem that consists in progressive taxation of the poor, not the rich."
The US and Germany have rejected the need for a global deal to tax billionaires, an initiative that is backed by France, Spain, South Africa, Colombia and the African Union. | BGNES