What revenue could a 2% wealth tax on billionaires generate?

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A 2% Wealth Tax on Billionaires Could Generate an Additional $250 Billion Annually

French economist Gabriel Zucman has estimated that an annual 2 percent wealth tax on the world's billionaires could generate an additional $250 billion in government revenue. This figure is based on the premise that the planet's approximately 3,000 billionaires would contribute this amount through income tax on their wealth. This proposal has gained traction among anti-poverty campaigners and has been a priority for leaders like Brazilian President Luiz Inacio Lula da Silva.
Potential Revenue Generation

The estimate suggests a significant financial boost for governments worldwide. If the 3,000 billionaires each paid a minimum of 2 percent of their wealth in income tax annually, the collective revenue generated could reach $250 billion. This figure highlights the potential of taxing extreme wealth to fund public services and address global challenges.
Context of Billionaire Taxation

Concerns about the tax contributions of the super-rich have been a recurring theme in global economic discussions. A 2021 White House study indicated that the wealthiest 400 billionaire families in the US paid an average federal individual tax rate of 8.2 percent, which is lower than the 13 percent paid by the average taxpayer. Furthermore, Oxfam reports that the richest 1 percent have accumulated $42 trillion in new wealth over the past decade, possessing more wealth than the lowest 95 percent combined.
G20's Stance on Taxing the Wealthy

While specific proposals for a minimum global income tax faced opposition from countries like the US and Germany, G20 finance ministers agreed in July to "engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed." G20 leaders later corroborated this decision, a move described by Zucman as "historic." This agreement signals a collective acknowledgment of the need to address the taxation of the wealthiest individuals.

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