Taxing the Ultra-Wealthy Could Raise Billions, But Loopholes Persist
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A minimum 2% wealth tax on billionaires could raise $250 billion globally, according to an EU research group report. This would affect under 3,000 people.
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Billionaires pay an effective tax rate as low as 0-0.5% of wealth due to evasion methods like using shell companies and moving to low-tax countries.
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A 15% global minimum corporate tax rate has failed to significantly increase revenues due to loopholes like companies moving to tax havens.
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Offshore tax evasion by households has fallen from 10% to about 2.5% of global GDP in the past decade thanks to policy changes like automatic information exchange.
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The report says tax evasion is not inevitable but depends on political will, as shown by progress made recently in some areas.