New Study Proposes "Zucman Tax" for Latin America to Raise $24 Billion from Top 3,000 Fortunes

A study on the "Zucman tax" suggests that a 2% levy on fortunes over $100M in seven Latin American countries would target just 3,000 people to combat inequality.

By: AXL Media

Published: Apr 15, 2026, 10:14 AM EDT

Source: The Tico Times

The Mechanics of the $24 Billion Proposal

The study, authored by inequality expert Vicente Silva, outlines a targeted fiscal strategy aimed at the "top of the top." By applying a 2% tax to fortunes over $100 million, the seven analyzed countries could bolster their public finances without affecting the vast majority of their citizens. According to Silva, this tax would impact only 3,000 individuals out of a combined population of 500 million. A more aggressive 3% rate scenario could potentially increase the annual yield to $36 billion. The proposal seeks to correct a regressive system where the super-rich in countries like Brazil and Chile currently pay effective rates that are nearly half the national average.

The "Zucman Tax" and G20 Influence

The proposal draws heavily from the work of French economist Gabriel Zucman, who was commissioned by Brazil during its 2024 G20 presidency to design a global minimum tax for billionaires. While the G20 initially pledged to work "cooperatively" on the issue in Rio de Janeiro, this new study provides a specific regional framework for Latin America. Zucman argues that since large fortunes currently see annual returns of approximately 8%, a 2% tax would only slightly reduce their portfolios while providing transformative revenue for state social programs and infrastructure.

Transformative Analysis: Confronting the "Fiscal Exodus" Narrative

One of the primary hurdles for wealth taxes is the fear of capital flight—the idea that the ultra-rich will relocate their residences to tax havens. However, the study challenges this entrenched narrative by citing 50 years of data from the London School of Economics, which suggests that tax cuts for top earners do not significantly drive growth, and conversely, modest increases do not trigger mass departures. Silva argues that the ultra-rich are anchored by domestic business networks and social ties. To further mitigate risk, the proposal includes "exit mechanisms" or "exit taxes" designed to penalize those who move their tax residence solely for avoidance, effectively turning tax competition into a manageable political choice rather than an inevitable economic consequence.