At its plenary session in Strasbourg on Wednesday 9 October, the European Parliament debated the EU’s support for the Brazilian Presidency of the G20’s proposal to tax great wealth in order to end poverty and reduce inequality. A good number of MEPs from all the groups supported the proposal.
The G20 Presidency’s proposal contains an internationally coordinated standard guaranteeing effective taxation of individuals whose total wealth exceeds one billion dollars, who would be required to pay a minimum amount of tax per year equal to 2% of their wealth (see EUROPE 13440/19, 13463/5).
For Gabriele Bischoff (S&D, German) and other MEPs on the left of the Chamber and for those within Renew Europe, it is a question of “social and environmental justice”. “We live in a Europe where families and small businesses have to pay their taxes and the super-rich do not make appropriate contributions”, she denounced.
Marlena Maląg (ECR, Polish) made the same point: “The tax system is unfair: it is based on taxing work or consumption, not assets”. Pierre Pimpie (PfE, French) believes that “the G20’s proposal to make greater demands on the wealthy is a step in the right direction”. However, he insisted on maintaining fiscal sovereignty: “This approach must not become a pretext for interfering in the competences of Member States”.
“We need to get things moving and we no longer have any excuses”, said Luděk Niedermayer (EPP, Czech), adding that the G20 proposal was “the way forward” and that it needed “the firm and clear support of the EU”.
However, several of his EPP and right-wing colleagues rejected the idea. “There is no proof that extraordinarily taxing the richest will put an end to poverty”, said Fernando Navarrete Rojas (EPP, Spanish). For him, the proposal is “deceptive”. If wealthy individuals do not pay their fair share of tax, it is because of the complexity of the fiscal system. “We know how to end poverty: through economic growth, innovation, trade and investment”, he refuted. (Original version in French by Anne Damiani)