💸Who's Saying: "Tax The Super Wealthy"?

Good morning. US stock futures were mixed in Wednesday morning trading as stock market indexes looked to recapture recent highs.

💸 New report suggests heavier taxes on the super rich

📝 Our report: Brazil, currently at the helm of the G20, has proposed a global tax on the super-rich in a new report. Individuals with more than $1 billion in total assets would be required to pay the equivalent of 2% of their wealth in income tax, according to the proposal in the report by Gabriel Zucman, a French economist who teaches at the Paris School of Economics

 🔑 Key points:

• The report says global billionaires currently pay the equivalent of 0.3% of their wealth in taxes. It said a 2% tax would raise $200 billion to $250 billion per year globally from about 3,000 individuals — money that could fund public services such as education and healthcare as well as the fight against climate change.

• In wealth, billionaires currently own the equivalent of 13% of the world’s GDP, up from 3% in 1987, according to the new report.

• The gap between the super-rich and the bulk of the global population has grown since the coronavirus pandemic, according to anti-poverty organization Oxfam International, which praised the new report.

💡 So what: A global tax on the super-rich could generate substantial revenue for governments worldwide, potentially funding public services, infrastructure, and social programs, while helping to reduce income inequality and address social and economic disparities. Implementing such a tax would require unprecedented international cooperation, setting a precedent for future global economic policies. However, it might also lead to increased tax evasion and the use of tax havens as the wealthy seek to protect their assets. Additionally, it could impact investment and economic growth as the super-rich adjust their spending and investment strategies in response to higher taxes.

Wednesday - No Major Economic News

Thursday - GDP (revised)

Friday - Richmond Fed President Tom Barkin Speaks in Paris, Consumer Sentiment (final)

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👖 Volkswagen outlines stake in EV startup

WHAT: German automaker Volkswagen will pump up to $5 billion into U.S. electric-vehicle maker Rivian in a joint venture to share EV architecture and software. The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDV), with Rivian licensing its existing intellectual property rights to the joint venture.

WHY: While EV startups have been grappling with a slowdown in demand amid high interest rates and dwindling cash, traditional automakers have struggled to build battery-powered vehicles and advanced software.

🤖 Visa, Mastercard swipe settlement rejected

WHAT: A U.S. judge nixed a $30 billion antitrust deal where Visa and Mastercard agreed to cap fees charged to merchants who accept their cards. U.S. District Judge Margo Brodie in Brooklyn said she was not likely to grant final approval to the settlement, and therefore denied the request by a group of merchants, primarily small businesses, for preliminary approval.

WHY: The settlement announced on March 26 was intended to resolve most litigation that began in 2005 over so-called swipe fees, also known as interchange fees, that merchants pay to accept Visa and Mastercard, and which the card networks set.

🥡 Meal delivery company mulls takeover

WHAT: U.S. meal delivery giant DoorDash hinted at a takeover interest in Britain's Deliveroo last month, insiders told Reuters. San Francisco-based Doordash made the approach to Deliveroo, but talks ended after disagreement on valuation, said one of the people, speaking on condition of anonymity because the matter is private.

WHY: Online food delivery companies have looked to pivot away from unprofitable markets. Germany’s Delivery Hero said in May it planned to sell its Taiwan business to Uber and sold its minority stake in Deliveroo in January, according to reports.

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