Spain and Brazil have announced a landmark initiative calling for higher tax contributions from the world’s wealthiest individuals, framing it as a necessary step to address rising inequality and fund critical public needs.
The proposal was presented at the United Nations’ 4th International Conference on Financing for Development, held this week in Sevilla, Spain. As record heat scorched the conference venue, delegates gathered to discuss how to finance sustainable development goals (SDGs) that are increasingly off track.
The timing—and the symbolism—couldn’t be clearer: as temperatures rise, so does inequality. According to the initiative’s backers, the richest one percent of the world’s population now controls more wealth. This is more than the remaining 99 percent combined.
“INEQUALITY IS A PROBLEM EVERYWHERE”
At a press conference, Spain’s Secretary of State for Finance, Jesús Gascón, laid out the stark reality. “Our countries need more and more public revenues to meet their needs. Inequality is a problem everywhere, and the richest pay less than the middle class—sometimes even less than lower-income taxpayers.”
This is partly due to tax loopholes. Lower effective tax rates also play a role. Furthermore, complex legal structures are used to shield wealth. The initiative aims to create a fairer global tax system. This system is more progressive. It ensures those with the most resources contribute proportionately.
A GLOBAL DRIVE FOR FAIR TAXATION
Spain and Brazil are urging other nations to join them. They describe their approach as moderate and pragmatic that tackles an extreme situation. “We can’t tolerate the intensity of inequality. It has been increasing in recent years,” said José Gilberto Scandiucci, Brazil’s Minister-Counsellor to the UN. “This is a moderate initiative to confront a very radical reality.”
The plan is part of the Seville Platform for Action. It is designed to accelerate voluntary measures. These measures help countries meet the 2030 Sustainable Development Goals.
The timing is notable: it follows the 2024 G20 agreement in Rio, the first international accord committing major economies to collaborate on taxing high-net-worth individuals.
INFORMATION SHARING AND CLOSING GAPS
One pillar of the proposal is a commitment to better data sharing between governments and tax authorities. The rationale is simple: you can’t tax what you can’t see. In today’s globalized economy, wealthy individuals can shift money across jurisdictions, exploiting secrecy and fragmentation to avoid fair contributions.
By improving access to reliable data and building national capacity for analysis, tax administrations will be better equipped to:
- Pinpoint where wealth is concentrated
- Understand how much tax is currently being paid
- Identify gaps and loopholes
Mr. Gascón emphasized that knowing the beneficial owners behind companies and legal structures is critical. Without this transparency, tax evasion and avoidance thrive.
TECHNICAL COOPERATION AND CAPACITY BUILDING
In addition to data sharing, Spain and Brazil propose:
- Technical cooperation among tax authorities
- Training in data analytics and auditing
- Peer review mechanisms to help countries strengthen their tax systems
These measures aim to ensure that smaller and less wealthy nations are not left behind, and that all governments can enforce fairer taxation of the ultra-rich.
A GLOBAL WEALTH REGISTRY ON THE HORIZON?
One of the most ambitious elements under consideration is the creation of a global wealth registry. Such a registry could catalog ownership of assets across borders, shining a light on the hidden fortunes often shielded by opaque structures.
However, both Spain and Brazil acknowledge this would require:
- Major political will
- Deep international cooperation
- Substantial national efforts to align legal and technical systems
Even so, they stress that the goal is clear: more transparency, more accountability, and fairer contributions from the richest individuals.
A PUSH FOR MORE COUNTRIES TO JOIN
While some progress has already been made, the governments say much more remains to be done. They are currently drafting a three-month work plan to define concrete next steps, with regular follow-up meetings to track progress.
The goal is to expand the coalition, bringing in:
- More countries across income levels
- International organizations such as the OECD and IMF
- Civil society groups advocating for tax justice
A MODERATE PROPOSAL TO A RADICAL PROBLEM
Responding to suggestions that this was a “far-left agenda,” Brazil’s Scandiucci was unequivocal:
“This is not radical or ideological. It is a moderate initiative to respond to a very radical reality—where the richest individuals pay proportionately less tax than almost everyone else.”
The message from Seville was consistent. Reducing inequality requires more than goodwill. It requires policy tools to ensure fair taxation.
THE BROADER CONTEXT: FINANCING THE SDGS
The Sustainable Development Goals were adopted in 2015. They commit the world to ending poverty. They also aim at reducing inequality and protecting the planet by 2030. But most indicators are far behind schedule, in large part because of inadequate public revenues.
The UN conference itself highlighted the widening gap between ambition and funding.
Gascón argued that fair taxation of the super-rich is an essential piece of the puzzle: “If we want to effectively tax the super-rich and fight inequality, we need political will. We also need to make our tax systems fairer and more progressive. Additionally, we need to act within our means.”
A NEW ERA OF GLOBAL TAX COOPERATION?
Spain and Brazil’s joint initiative signals a growing recognition that global challenges require global solutions.
From climate change to poverty reduction, governments need stable and predictable resources. And in a world where the wealthiest one percent controls more wealth than the entire rest of humanity, calls for fair taxation are growing louder and harder to ignore. Whether this proposal becomes a turning point remains to be seen. But for many advocates of tax justice, the message is clear: the time for half-measures is over.
