2% Tax on Billionaires? How the "Zucman Tax" Would Work in Latin America
The application of the "Zucman tax", a tax on large fortunes, in seven Latin American countries would allow the collection of 24 billion dollars annually, taxing only about 3,000 people, according to a study published this Tuesday.
TL;DR
- A 2% tax on fortunes over $100 million in seven Latin American countries could raise $24 billion annually.
- This tax would affect approximately 3,000 individuals, the richest in the region.
- The richest 1% in Latin America currently pay proportionally less in taxes than the poorest 50%.
- The proposed tax aims to correct regressive taxation at the top and ensure the wealthy contribute according to their economic capacity.
- Implementing this tax requires political will to overcome polarization and opposition from elites.
- Evidence suggests tax cuts for the highest earners do not boost economic activity.
- Anti-avoidance mechanisms can mitigate the risk of fiscal exodus.