Archy World News

Growth. According to the IMF, it should be taxing more heavily the rich

the

At a time when in many western countries, including France, the fiscal pressure on the wealthy falls significantly, the international monetary Fund (IMF) throws a stone into the pond. On the eve of its fall meeting, which starts on the 13th of October, the organization led by Christine Lagarde “has launched a strong warning to political leaders : by reducing taxes on the rich, the governments could undermine economic growth” announces the New York Times.

Or, as said, otherwise the Guardian : “Tax more heavily the income of the rich would help to reduce inequality without having a negative impact on growth”.

This message, carried by a report in the IMF posted on 11 October, “has a particular resonance in the United States, where the administration Trump and the republicans propose a tax reform, which, according to its critics, will increase the inequality of income by reducing the taxes of the wealthiest”, emphasizes the New York Times.

It should also tax the goods luxury

And in the Uk, adds to the Guardian, he is the epitome of the labour Party, which proposes to tax 45 % income higher than 80,000 pounds (91 € 200), and 50% of the returns in excess of 123, 000 pounds (140 000 euros).

In the countries of theOECD, see the IMF, the highest rate of income tax has tumbled from an average of 62 % in 1981 to 35 % in 2015. However, according to the institution, the rate optimal would seem to belong to 44 %.

how, Then, to tax the richest ? Always after the IMF, the government should not be limited to the tax on the income of individuals. the “A tightening of the rules on capital gains and on dividend income, as well as property taxes, inheritance taxes and other taxes on goods of luxuries can also be good ways to help the richest to better redistribute the wealth”, says Duty.

But as noted by the canadian daily newspaper :

the IMF accepts that such reforms might be difficult to pass, because the wealthy tend to have more political influence.”

The tax, however, is not the only tool to reduce inequalities, which may, under the terms of the IMF, “erode social cohesion, lead to political polarization and, ultimately, reduce economic growth.” In 2015, the redistribution policies implemented in the developed countries reduced one-third of the inequality, calculate the institution. Three-quarters of this reduction would be attributable to the policy of transfers, such as social assistance, benefits for dependent children, and other security program of old age, and only one quarter for taxes.

Leave a Comment

Your email address will not be published. Required fields are marked *

 
21