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Increase taxes for the rich… October 12, 2017

Posted by WorldbyStorm in Uncategorized.
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The Guardian reports that:

Higher income tax rates for the rich would help reduce inequality without having an adverse impact on growth, the International Monetary Fund has said.

The Washington-based IMF used its influential half-yearly fiscal monitor to demolish the argument that economic growth would suffer if governments in advanced Western countries forced the top 1% of earners to pay more tax.

And:

The IMF said tax theory suggested there should be “significantly higher” tax rates for those on higher incomes but the argument against doing so was that hitting the rich would be bad for growth.

But the influential global institution said: “Empirical results do not support this argument, at least for levels of progressivity that are not excessive.” The IMF added that different types of wealth taxes might also be considered.

This one suspects must be regarded as a shot across the bows of the Trump regimes plans to cut taxes for the wealthy there.

Still, big news, yet not a mention of it on the IT or RTÉ websites…

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1. GW - October 12, 2017

The IMF seem to have made themselves personae non gratae in various circles, but hinting at the transparency of the king’s getup.

Certainly they are not particularly welcome in the German finance ministry. And among the neo-Lib press of course.

Let’s see what happens during and after the next financial crash. Or when the UK comes cap in hand after Brexit.

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GW - October 12, 2017

but -> by

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2. CL - October 12, 2017

‘Steve Bannon, who helped Trump’s election campaign tap into populist unrest, has backed a higher rate for the rich….
Sanders also took regular shots at the kind of economic orthodoxies that the IMF once routinely endorsed….
But the Fund’s thinking has changed….
The IMF’s tilt toward redistribution may ease frictions with some governments — but not, evidently, with Trump’s’
https://www.bloomberg.com/news/articles/2017-10-11/-tax-the-rich-is-imf-s-unlikely-new-mantra-in-fight-with-trump

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3. Tomboktu - October 12, 2017

I wouldn’t read the IMF’s reoort as a shot at Trump. It’s been in the offing for some time, and is global in its scope. I watched the video of the press conference and that makes clear that the IMF is looking at the breadth of economies (China, Nigeria and Greece featured in the discussion).

If it’s a shot at anybody, it would be the OECD which has been pushing a line – taken up by our Dept Finance – on cutting income taxes.

And on a related point, why did the Guardian publish its report without including a link to the IMF report itself?

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