G20 pledges to work together to tax ultra-rich

G20 nations have agreed to work together to make the super-rich pay their taxes, but stopped short of a more substantial deal, according to a declaration adopted on Friday after a meeting of finance ministers in Rio de Janeiro.

The thorny topic of tackling tax-dodging billionaires dominated the two-day meeting in the Brazilian city, which will host a G20 summit in November.

The initiative is a key priority for Brazilian President Luiz Inacio Lula da Silva, who this year heads the grouping, which includes the world’s major economies, the European Union and the African Union.

Lula was hoping for a minimum tax on the moneyed elite, but the final statement represents a compromise on a topic that divided member states.

“With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” the statement said. “Wealth and income inequalities are undermining economic growth and social cohesion and aggravating social vulnerabilities.”