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Will Mexico copy California’s ‘Billionaire Tax’ proposal?

After returning from the IV Summit in Defense of Democracy in Barcelona earlier this month, Mexican President Claudia Sheinbaum finds herself at the center of a growing global debate: whether to tax extreme wealth.

According to a recent report from El Sol de México, Sheinbaum has committed to evaluating a “fair and progressive” tax system that includes the possibility of a so-called “wealth tax.”

Quentin Parrinello, policy director of the International Tax Observatory, confirmed that the president discussed the matter with the 11 other left-of-center heads of state attending the summit.

The numbers are striking. The Observatory estimates that a two percent tax on fortunes exceeding US$100 million would generate US$10 billion annually for Mexico — approximately one percent of GDP. With a three percent rate, that figure rises to US$15 billion.

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