Welcome to the 47th edition of Newsletter by ​EdGenie​! 

and the first edition of EdGenie's 📜 Sunday Scroll...

Hey Genies,

🌍 Global Billionaire Tax Feasible: An international scheme to tax the world's 3,000 billionaires is technically feasible and could generate up to $250bn annually, according to a new report.
📊 Study by Gabriel Zucman: The study by economist Gabriel Zucman highlights the potential for a global tax on individuals, inspired by recent progress in taxing multinational corporations.
🇧🇷 Commissioned by Brazil: Brazil, currently presiding over the G20, commissioned the report to explore ways to increase taxes on the super-rich.
💬 Public Support Noted: Zucman notes overwhelming public support and parallels the idea to the once "utopian" minimum tax on multinationals, now backed by 130 countries.
📉 Low Tax Rates for Billionaires: Billionaires currently pay an average of 0.3% tax on their wealth, significantly lower than the rates paid by workers.
📈 Wealth Growth: The wealth of the top 0.0001% has grown by 7.1% annually from 1987 to 2024, increasing their share of global wealth from 3% to 14%.
💵 Top-Up Income Tax Proposal: Zucman's proposal suggests a top-up income tax for billionaires, ensuring an annual tax bill worth at least 2% of their wealth.
🤝 Need for International Cooperation: International cooperation is crucial to avoid a "race to the bottom," though the plan could proceed without unanimous global adoption.
🇺🇸 US Opposition: The US opposes a global wealth tax, but Biden's budget proposal aligns with Zucman's plan to tax the super-rich.
📈 Valuation and Enforcement: Valuing billionaires' wealth would be straightforward, as most is held in shares, with enforcement possible through strengthened exit taxes and "tax collector of last resort" rules.
📅 G20 Discussion: The proposal will be discussed at the upcoming G20 finance ministers' meeting in Rio de Janeiro.
🌐 Support from Oxfam and Patriotic Millionaires: Oxfam International and Patriotic Millionaires UK endorse the plan, emphasising the need for fair taxation to combat wealth concentration.
💡 Extended Taxation: Extending the tax to individuals with over $100m in wealth could raise an additional $100bn-$140bn annually.

Q: Explain the significance of the international scheme to tax billionaires’ wealth, as proposed by Gabriel Zucman.
A: The significance of the international scheme lies in its potential to generate up to $250bn annually in extra revenue, addressing the low levels of tax currently paid by the super-rich. This scheme aims to reduce wealth inequality, enhance government revenues for public services, and set a precedent for global cooperation in progressive taxation.

Q:Analyse the reasons behind the current low tax rates paid by billionaires, as highlighted in the report.
A: Billionaires currently pay low tax rates due to various factors, including the use of tax havens, complex financial instruments that obscure wealth, and the limited scope of existing tax regulations. The average tax rate of 0.3% on their wealth contrasts sharply with the higher rates paid by workers, reflecting systemic inefficiencies and loopholes in the tax system.

Q:Evaluate the economic implications of the 7.1% annual growth in the wealth of the top 0.0001% of individuals from 1987 to 2024.
A: The 7.1% annual growth in the wealth of the top 0.0001% has significantly increased their share of global wealth from 3% to 14%. This concentration of wealth can lead to economic inequality, reduced social mobility, and potential distortions in political and economic power. Addressing this concentration is essential for promoting a more equitable distribution of resources.

Q: How does Zucman’s proposal to levy a 2% annual tax on billionaires' wealth align with principles of progressive taxation?
A: Zucman’s proposal aligns with progressive taxation principles by ensuring that the wealthiest individuals contribute a fairer share of their wealth in taxes. This top-up income tax aims to redistribute wealth more equitably, reduce economic disparities, and fund public services that benefit society as a whole.

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