Increasing taxes on the wealthy and corporations could help the global economy rebound.
That s according to officials at the International Monetary Fund, who say it could level playing fields.
This further cements the IMF s shift toward progressive economics, as wealth taxes grow in popularity.
Lifting taxes on wealthy individuals and corporations could improve the global rebound from the coronavirus recession , officials at the International Monetary Fund said Wednesday.
New stimulus and an improved rate of vaccination led the IMF to raise its global growth forecast earlier in the week, but the organization is already looking beyond the initial rebound. Governments will eventually need to retract their fiscal support to avoid possible debt risks. Balancing stimulus with austerity will be a key challenge in the coming years, and reforming both domestic and international taxes can help bring about a more equitable and enviro
Governments should consider wealth taxes to pay off Covid debts, IMF says telegraph.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from telegraph.co.uk Daily Mail and Mail on Sunday newspapers.
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Tax the rich to unwind inequality Submitted by AWL on 2 March, 2021 - 8:09
Author: Chris Reynolds
Economists on a Wealth Tax Commission reported in December 2020 in favour of a small one-off wealth tax to raise £260 billion over five years. Britain has the lowest rate of tax on corporate profits among big, rich countries 19% where the US rate is 26%, Germany 30%, France 32%.
To really “build back” for equality, we need to win democratic public ownership over the bulk of the business, financial, and real-estate wealth of the top few per cent, the bosses and bankers.
Even short of that, there is overwhelming reason to tax the rich for reconstruction costs. Advance reports of the 3 March Budget say that even Tory chancellor Rishi Sunak will edge up corporation tax.
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Image credit: HM Treasury
The government has steered clear of introducing a one-off wealth tax to tackle the mounting debt caused by coronavirus.
There was no mention of such a scheme in today’s Budget but the topic could rear its head again in a few weeks, in what industry commentators have branded ‘tax day’.
On 23 March, the Treasury will publish a number of tax policy consultations, something which usually would happen alongside the Budget.
A wealth-tax had been mooted as one way for chancellor Rishi Sunak to help plug the hole in the country’s public finances caused by the Covid-19 pandemic.