Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

German finance minister rejects Brazil's proposal to tax super-rich

Published 18/04/2024, 14:41
© Reuters. German Finance Minister Christian Lindner attends the weekly cabinet meeting at the Chancellery in Berlin, Germany, March 20, 2024. REUTERS/Liesa Johannssen/ File photo

WASHINGTON (Reuters) -German Finance Minister Christian Lindner rejected on Thursday Brazil's proposal to tax the super-rich, indicating a challenging path for it to gain widespread G20 support.

"We do not think it is suitable," he said at a press conference alongside Bundesbank President Joachim Nagel in Washington. "We have an appropriate taxation of income."

Brazil, heading the presidency of the Group of Twenty (G20), is aiming to build international consensus on the taxation of wealth this year, and is pushing for a joint declaration at a meeting of G20 finance ministers and central bankers in July.

The topics mentioned in a joint statement from the group of the world's 20 largest economies require the agreement of all member countries.

Speaking after meeting U.S. Senator Bernie Sanders on Thursday, Brazil's Finance Minister Fernando Haddad said of Lindner's opposition to the proposal: "He will change (his mind)."

Sanders said he "strongly" supports the proposal and will do everything possible to get the Biden administration to embrace it.

Brazil's Haddad also met on Thursday with his Chinese counterpart Lan Fo'An and, according to a source at the meeting who spoke on condition of anonymity, the Chinese government demonstrated openness and interest in studying the proposal.

But the Brazilian government is aware that other countries like Japan and Italy have shown resistance to the initiative, added the source.

While Germany's Lindner is sceptical about the proposal, his French counterpart, Bruno Le Maire, has shown support for it.

© Reuters. German Finance Minister Christian Lindner attends the weekly cabinet meeting at the Chancellery in Berlin, Germany, March 20, 2024. REUTERS/Liesa Johannssen/ File photo

On Wednesday, Le Maire said that moving to tax the rich was the logical next step for a series of global taxation reforms launched in 2017, including agreement on a global corporate minimum tax.

He said the G20 should aim to reach an agreement on taxing the rich by 2027.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.