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G20 Summit: Brazil’s billionaire tax plan faces pushback

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The G20 summit in Rio aims to build consensus on taxing the super-rich for climate action and poverty relief. But as geopolitical issues take priority, President Lula may struggle to quell skepticism over the proposal.

 

Brazilian President Luiz Inacio Lula da Silva, hosting the G20 summit in Rio de Janeiro from Monday, will try to progress plans to tax the world’s richest billionaires, who often use complex loopholes to avoid tax.

At a July meeting of G20 finance ministers in Rio, the world’s wealthiest nations agreed to start a “dialogue on fair and progressive taxation, including of ultra-high-net-worth individuals,” despite fierce resistance from the United States and within Germany’s now collapsed coalition government.

While the world’s growing geopolitical issues — the Ukraine and Gaza conflicts, the prospect of a second Trump term in the US and China trade — are expected to dominate the two-day summit, Lula hopes to move the wealth tax plan forward as the money raised from billionaires will help boost other pressing global issues.

Campaigners have called for years for greater scrutiny over how the wealthy avoid taxes
© Fabrice Coffrini/AFP

 

Advocates say new tax would cause little pain

Devised by French economist Gabriel Zucman, the plan would introduce an annual tax of 2% on the total net worth of the uberwealthy — not just their annual income. This would include real estate assets, corporate shareholdings and other investments. Zucman estimates that the top 0.01% of the population pay an effective tax rate of just 0.3% of their wealth.

The new levy could raise up to $250 billion (€237 billion) a year from the nearly 2,800 billionaires globally, who have a combined net worth estimated at some $13.5 trillion, according to the Forbes Richest World’s Billionaires List. The funds raised would be used to tackle growing global inequalities, especially among heavily indebted low-income countries, including many in Africa.

“The taxation of high net-worth individuals is very important as it could be a source for funding initiatives that fight hunger and poverty, and also tackle climate change,” Tomas Marques, a research fellow at Hamburg’s GIGA Institute for Latin American Studies, told DW.

Developing nations, who many scientists say are being disproportionately affected by climate change, have for years demanded funding to offset its worst impacts. Success stories include World Bank and Green Climate Fund support for India’s bid to boost solar power capacity and Brazil’s Amazon Fund, aimed at reducing deforestation, which is part-funded by Norway and Germany.

Skepticism over G20 spending plans

While there may be broad public support for new taxes on the ultra-wealthy, the rise of national populism in many G20 countries is increasing scrutiny about how public money is spent, amid concerns that international aid and development funds could be better deployed at home.

“Most of the G20 countries are having a hard time balancing their budgets,” Maria Antonieta Del Tedesco Lins, an economist and associate professor at the University of Sao Paulo, told DW. “While extra taxes would help, it’s very hard to juggle national pressures with new international or multilateral obligations.”

Monday’s opening ceremony in Rio will launch the Global Alliance Against Hunger and Poverty, an initiative under Brazil’s G20 presidency that seeks to accelerate efforts in the fight against poverty and a lack of food by 2030.

The Brazilian government is also the principal backer of the proposed tax on the ultrawealthy, along with France, Spain and South Africa. Despite this support, the lower house of Brazil’s parliament, the Chamber of Deputies, last month rejected plans for an additional domestic levy on those with large fortunes.

“It’s a shame because Brazil could benefit a lot [from this tax] because we are a very unequal country. If there was an international consensus [on taxing the superrich] it could help negotiations in the Brazilian Congress,” said Lins, who took part in a G20 academic engagement group ahead of the summit.

In Brazil, as in the rest of the world, the wealthy often shield their wealth from tax authorities by creating shell companies in countries with low or zero taxes, taking advantage of banking secrecy laws and forming trusts and charitable foundations, which offer generous tax breaks.

US spurns wealth-tax proposal

While China’s and India’s positions on the new tax are ambiguous, Washington remains firmly opposed. US Treasury Secretary Janet Yellen told the Wall Street Journal in May that the measure was “something we can’t sign on to.”

President-elect Donald Trump has yet to comment on the proposal but is unlikely to back hiking taxes on the uber-rich. His first term was marked by large tax cuts — which benefited wealthy individuals and corporations the most. But during his short-lived run for the White House in 2000, he did promise to cut the national debt by levying a one-time 14.25% tax on the wealthy.

Lula then faces tough odds in making any meaningful progress during the two-day summit, especially as many critical geopolitical issues, as well as Brazil’s proposal to improve global governance will also dominate the talks.

“Lula is a great negotiator,” Marques said. “He bills himself as a bridge builder between the Global South and Global North. But I don’t know how he can reach a consensus around this very sensitive topic.”

Brazilian President Luiz Inacio Lula da Silva is a shrewed negotiator, who is determined to push ahead with higher taxes on billionaires
© Erica Martin/TheNEWS2/picture alliance

 

Wealth tax — a boon for Africa

Better representation at G20 for Africa is now critical, as the continent seeks to benefit from any new tax plan, through the receipt of poverty and climate alleviation funds. The African Union, the regional bloc of 55 African countries, will be attending the Rio summit for the first time, after being admitted as a full G20 member in August.

Next year, South Africa will take over the rotating G20 presidency — the fourth consecutive leadership of the bloc from the Global South, after Indonesia, India, and Brazil. The role will give the country and Africa as a whole further opportunities to shape global policies and advocate for the continent’s interests.

“African countries have been underrepresented in the G20 despite the continent’s importance globally,” Marques, who is in Rio for the summit, told DW. “But things are changing, and the African Union is now starting to have some influence on policymaking.”

Edited by: Uwe Hessler

Author: Nik Martin

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Zelensky dampens hopes Trump could strike peace deal with Putin

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Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia
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Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia, even if pressured to do so by allies, dampening hopes that Donald Trump may be able to strike a peace deal.

‘No matter what anyone wants, even if all the allies in the world unite, we will never recognise the occupied territories [as part of Russia]. This is impossible,’ the Ukrainian president emphasised.

‘We will not legally recognise them. For us, they will always remain occupied territories until we liberate them.’

Trump, who took office for a second term on Monday and was last in power before Russia launched its full-scale invasion of Ukraine, has repeatedly said he could end the war swiftly, without specifying how.

His newly-appointed Secretary of State Marco Rubio said on Tuesday that ending the war was a priority for the president, but would only be possible if both sides make significant concessions.

‘Anytime you bring an end to a conflict between two sides, neither of whom can achieve their maximum goals, each side is going to have to give up something,’ he told CNN, adding that ultimately the decision would be down to the Ukrainians and Russians.

It comes after Russian Deputy Foreign Minister Sergei Ryabkov said today that Moscow sees a small window of opportunity to forge agreements with the new US administration.

‘We cannot say anything today about the degree of the incoming administration’s capacity to negotiate, but still, compared to the hopelessness in every aspect of the previous White House chief (Joe Biden), there is a window of opportunity today, albeit a small one,’ Ryabkov said, according to Interfax.

Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia

 

Donald Trump, who took office for a second term on Monday, has said he could end the war swiftly, without specifying how

 

A Russian soldier fires a self-propelled gun

 

‘It’s therefore important to understand with what and whom we will have to deal, how best to build relations with Washington, how best to maximise opportunities and minimise risks,’ he said, speaking at the Institute for US and Canadian Studies, a think-tank in Moscow.

Trump warned on Tuesday that he would likely impose more sanctions on Russia if President Vladimir Putin refused to negotiate to end the nearly three-year-old conflict.

He gave no details on the possible additional sanctions on Russia, which is already under significant Western sanctions over the war.

The new president also issued a blow to the Kremlin on Tuesday, accusing Putin of ‘destroying Russia‘ with his failed war as he urged him to ‘make a deal’ to end the conflict.

‘He has to make a deal. I think he is destroying Russia by not making a deal,’ Trump said in a stark warning to the dictator.

‘I think Russia is going to be in big trouble,’ he added, saying that Putin ‘can’t be thrilled that he’s not doing so well.’

‘I mean, he works hard, but most people thought the war would be over in about a week, and now it’s been three years, right?’

The Russian economy was sinking, he went on, with inflation a major threat.

Putin, 72, earlier said he was ready to engage with Trump but still insisted on an outcome favouring Russia.

‘We are open to dialogue with the new US administration on the Ukrainian conflict. The most important thing here is to eliminate the root causes of the crisis,’ said the Russian ruler. An initial phone call is expected by Moscow to take place soon.

Trump said Zelensky was ready for a deal to halt the debilitating conflict, and the 78-year-old US leader said he planned to meet Putin with whom he had a ‘great relationship’ during his first term.

‘We’re going to try to do it as quickly as possible. You know, the war between Russia and Ukraine should never have started.’

Trump warned on Tuesday that he would likely impose more sanctions on Russia if President Vladimir Putin refused to negotiate to end the nearly three-year-old conflict

 

After months of Ukraine occupying parts of Russia’s Kursk region as it aims to improve its position in the event of talks, Zelensky stated that any dialogue could only go ahead with Kyiv in a position of strength.

Putin cannot be treated as legitimate in this situation. He has violated everything. He must understand his transgression,’ the Ukrainian president said today, adding that if Putin was ‘approached as an equal – that would be a loss for Ukraine.’

But, he said, his government’s top priority was to find a way to halt the war, which has claimed the lives of at least 43,000 Ukrainian soldiers, according to figures released by Ukraine in December.

‘We must find all possible ways to end the hot phase of the war. This is the number one issue,’ Zelensky said.

‘There can be many talks, but the main goal is to stop the active phase. This is the first guarantee of security.’

Russia has occupied Crimea since its 2014 invasion of the territory. Months later it took large parts of the Donbas region, launching a was under the guise of a separatist uprising.

Since the full-scale invasion in 2022, Russian forces have controlled large swathes of southern and eastern Ukraine.

Meanwhile, since a surprise attack in August, Kyiv’s forces occupy around 600 sq km of Russian territory.

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Trump orders ‘blackout’ at CDC, FDA, NIH as agencies prepare for MAGA

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The incoming Trump administration has ordered a pause on all external communications from the federal health agencies (Trump is pictured above at a news conference in the Roosevelt Room of the White House yesterday)
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Donald Trump has ordered a communications blackout at America’s federal health agencies, according to reports.

The CDC, FDA, HHS and NIH have all been told to pause external communications, including publishing scientific reports, updating websites or issuing health advisories.

The directive came without warning, sources told the Washington Post, and with little guidance as to how long it may last.

The health agencies play a vital role in gathering and sharing critical information with the public, including on outbreaks of infectious diseases, raising the alarm over foodborne disease outbreaks and food recalls.

However, DailyMail.com received its automated weekly FDA recall email at 8am ET this morning.

It is not entirely unusual for incoming administrations to pause external communications temporarily, which may be done to help newly appointed officials understand the scope of information that is being released.

But some said that if the pause lasts longer than a week or two then it could be seen as concerning.

The new president, 78, singled out public health agencies in his inaugural address — saying that they ‘do not deliver in times of disaster’, referring to what many have seen as a mishandling of Covid messaging.

Robert F. Kennedy Junior has been nominated to head up the HHS, which has oversight over all the federal health agencies.

As part of his ‘Make America Healthy Again’ pledge, he has promised to overhaul the three agencies.

The communications blackout was issued by Stefanie Spear, a deputy chief of staff at HHS who joined the agency this week. She was also RFK Jr.’s press secretary during his presidential campaign.

The pause on external communications includes blocks on publishing scientific reports issued by the CDC, known as Morbidity and Mortality Weekly Reports (MMWR), advisories sent out to clinicians on the CDC’s health network, data updates to the CDC website, and public health data released from the National Center for Health Statistics, including on drug overdose deaths.

The CDC had been scheduled to publish several MMWR reports this week, sources familiar with the matter said, including three on the bird flu outbreak alarming scientists.

It was not clear whether the directive also blocked the agencies from sharing urgent communications, such as on drug approvals or novel disease outbreaks.

Dr Lucky Tran, a Democrat-leaning science communicator at Columbia University, blasted the order as the beginning of censorship.

Jeff Jarvis, a retired professor of journalism at City University New York, said: ‘This is terrible: Forced ignorance on health data.

‘Officials in sane and scientific states must band together to report data on their own. We need such shadow governments.’

The CDC publishes on average about 50 peer-reviewed articles per week, in addition to updating numerous datasets and other materials, while the FDA initiates more than 500 food recalls per year.

The CDC receives about $24.9billion in public funding every year, while the FDA costs $8.4billion and the NIH costs more than $47billion annually.

At the beginning of Trump’s first term, administration officials also asked public health agencies to cease communicating with the public it was reported at the time.

At that time, the limits appeared focused on agenices overseeing environmental and scientific policy, such as the Environmental Protection Agency.

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Putin Hails Trump On Inauguration As US President For Second Time, Says Russia Willing To End War

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Russia President Vladimir Putin has congratulated Donald Trump as he is being inaugurated as the 47th President of the United States.

Putin on Monday, 20th of January 2025 revealed he was open to dialogue with the new U.S. administration on Ukraine and nuclear arms. He also indicated that Moscow was ready to discuss nuclear arms control and wider security issues.

In a video broadcast, Putin noted that he was interested in a long-lasting peace in Ukraine rather than a short-term ceasefire with the country.

He made the comments during the Russia’s Security Council meeting that was shown on state TV. According to him, “We see the statements by the newly elected president of the United States and members of his team about the desire to restore direct contacts with Russia,” said Putin.

“We also hear his statement about the need to do everything possible to prevent World War Three. We of course welcome this attitude and congratulate the elected president of the United States of America on taking office. “As for the resolution of the situation (in Ukraine) itself, I would like to emphasise that the goal should not be a brief ceasefire, not some kind of period of respite that would allow a regrouping and rearmament of forces, but a long-term peace based on respect for the legitimate interests of all people and all peoples who live in the region.”

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