The Ultra-Wealthy: The Tax Solution to the Global Crisis?
The idea of a global tax on the ultra-wealthy is back in the spotlight in 2024, championed by influential economists such as Gabriel Zucman and supported by emerging economies such as Brazil, which holds the G20 presidency this year.
According to a report commissioned for this summit, an annual 2% tax on wealth exceeding $50 million could generate up to $250 billion a year—enough to fund ambitious social projects on a global scale. But this ambitious idea is divisive: Is it realistic, or is it merely an unattainable ideal?
Growing Inequality
The findings are alarming: in 2024, 1% of the world’s population holds nearly 40% of global wealth, according to an Oxfam report. This concentration continues to intensify, fueled by exceptional returns on investments made by the ultra-wealthy and by tax policies considered too favorable to the richest in many countries.
At the same time, the health, economic, and climate crises of recent years have exacerbated inequalities. “We live in a world where billionaires are building rockets, while millions of people are struggling to access basic healthcare,” says Gabriel Zucman.
An Idea with Global Ambitions
Global taxation of the ultra-wealthy aims to establish a harmonized tax system to prevent tax evasion. Currently, many of the world’s wealthiest individuals shift their assets to tax havens or low-tax jurisdictions. This strategy drastically reduces government tax revenues and widens the wealth gap.
The principle would be simple: a progressive tax, starting at 2% for net worths exceeding $50 million and rising to 5% for those exceeding $1 billion. The revenue collected would be redistributed to the poorest countries or allocated to global initiatives such as combating climate change or ensuring universal access to education.
Political and Economic Obstacles
Despite its potential, this measure faces significant resistance. Some countries, notably the United States and Switzerland—where a large proportion of the ultra-wealthy reside—fear capital flight. But a global tax requires unprecedented international cooperation. And we know how difficult it is to reconcile the interests of different nations.
Furthermore, critics argue that this tax could stifle investment and innovation by reducing the resources available to the wealthy. “Entrepreneurs may become risk-averse if a significant portion of their wealth is taxed each year,” warns a representative of the International Organization of Investors.
The First Steps Toward Global Tax Cooperation
However, significant progress has been made in recent years. In 2021, a historic agreement on a 15% global minimum tax for multinational corporations demonstrated that tax cooperation is possible. In 2024, discussions are underway to extend this framework to high-net-worth individuals. “The global minimum tax for corporations has set a precedent. If we can do the same for the ultra-rich, we will take a decisive step toward greater tax justice,” says Gabriel Zucman.
’s Transformative Potential The revenue from such a global tax could have a massive impact. According to estimates, $250 billion per year would be enough to eradicate extreme poverty worldwide, while also funding infrastructure for the green transition. In Africa, for example, these funds could be used to develop electricity grids powered by renewable energy, creating jobs and reducing dependence on fossil fuels.
But beyond the numbers, this tax embodies a broader idea: that of global solidarity in the face of shared challenges. “We must recognize that the wealth accumulated by a minority often stems from collective resources or systems. It is only fair to redistribute it to meet global needs,” argues Zucman.
A Challenge in Implementation
Implementing such a tax, however, requires sophisticated technical and political tools. International wealth registries, which are still in their infancy, will need to be strengthened to identify and assess the assets of the ultra-wealthy. In addition, sanctions will need to be established for states or individuals who refuse to cooperate.
"It's not enough to have a good idea. We need binding and transparent mechanisms to ensure that every wealthy individual contributes according to their means," explains an OECD official.
Utopia or an inevitable future?
While a global tax on the ultra-wealthy remains an ambitious project, it is part of a growing trend toward greater tax regulation. In an increasingly interconnected world, local solutions are no longer sufficient to address global challenges. The idea of a global tax system, once viewed as a utopia, is gradually gaining ground in public debate.
The coming years will be decisive. If countries can overcome their divisions and join forces, this tax could become a reality. But in the meantime, it remains a striking illustration of the challenges—and opportunities—of our time.
