EY: Zucman's wealth tax would destroy 2 million jobs worldwide

A June 2026 EY report prepared for the Tholos Foundation and Americans for Tax Reform assesses a proposed coordinated global minimum effective tax standard for ultra-high-net-worth individuals.

The proposal would require individuals with wealth above $1 billion to pay at least 2% of their wealth annually in qualifying personal income and wealth taxes.

The report estimates that billionaires’ current average effective tax rate on wealth is about 0.5%. Under the proposal, the rate would increase to roughly 1.8% in a low-avoidance scenario, assuming that 10% of the potential tax base is eroded through avoidance or noncompliance.

EY finds that the tax would increase the cost of capital and lower the after-tax return on investment. Its model projects that reduced investment would gradually translate into a smaller capital stock, lower productivity, weaker labor income, and fewer jobs.

The report suggests that, compared to the current baseline:

• Global GDP would decline by, on average, $80 billion each year over the first ten years
• Global employment would decline by, on average, 2.0 million jobs throughout the first ten years
• Global labor income would decline by, on average, $10 billion each year over the first ten years

The report also identifies substantial administrative questions. Unlike income, wealth is often not directly observable or liquid. Publicly traded shares can be valued frequently, but private companies, real estate, partnerships, trusts, and other assets require periodic estimates. The proposal would therefore depend on valuation rules, information exchange, ownership reporting, and enforcement across jurisdictions.