[HN] EU-funded report calls for wealth of super-rich to be taxed, not income

This is the best summary I could come up with:

The shell companies also fall outside the most effective tools that have so far been used to combat tax avoidance, including the automatic exchange of banking information, which is followed by more than 100 countries.

“To date no serious attempt has been made to address this situation, which risks undermining the social acceptability of existing tax systems,” the report said.

The idea is based on the 2021 agreement between 140 countries and territories to impose a global minimum tax rate of 15% on the biggest multinational companies.

He explained that a billionaire’s tax would help governments fund important services such as education, infrastructure and technology, and soften the blow of oncoming crises, including future pandemics, and those linked to extreme weather events as a result of the climate crisis.

While it has the potential to accelerate a country’s transition to zero-carbon emissions, the Observatory said it raises some of the same issues as standard tax competition.

“It depletes government revenues, and if not accompanied by egalitarian measures, it risks increasing inequality by boosting the after-tax profits of shareholders, who tend to be towards the top of the income distribution.”

The original article contains 713 words, the summary contains 189 words. Saved 73%. I'm a bot and I'm open source!