IMF: taxes on rich and high incomes to help recovery

“They would reduce inequalities”. World public debt increases, vaccines “are the best possible investment”

07 April 2021 by https://www.rainews.it/

Governments should consider higher taxes on the rich to pay Covid bills.

This was stated by the IMF, according to which countries should consider “a temporary contribution to recovery from Covid” to be paid by the highest incomes. This would help reduce inequalities and “increase the likelihood of intergenerational mobility” given that young people are the ones who are paying the highest price of Covid.

Control of the virus can bring in 1 trillion tax revenues

“Until the pandemic is under control, fiscal policy must continue to support and remain flexible,” says the International Monetary Fund in the Fiscal Monitor, stressing that when the economic recovery is instead firmly anchored the objective of the policy of budget will be to promote a “green and fairer” economy. “If the pandemic is under control with vaccinations,” there will be “stronger economic growth that will yield more than $ 1 trillion in additional tax revenues in advanced economies by 2025,” notes Vitor Gaspar, head of the Fiscal Monitor.

World public debt rises, vaccines better investment

World public debt rose to record levels but was the result of exceptional stimulus measures put in place by governments to avoid the worst. Gaspar says this, considering vaccines the “best possible investment”. “World public debt rose to almost 97% of GDP at the end of 2020 and is expected to remain just below 100% in the medium term. Unemployment and extreme poverty have increased significantly. The pandemic therefore risks leaving deep scars.” , he warns.

Georgieva: there is light at the end of the tunnel, but I risk scars

“There is a light at the end of the tunnel. After the worst recession since World War II, the recovery is underway.” But “even if there is a light, the crisis continues to cast shadows”, such as a “dangerously” multi-speed recovery, high uncertainty and the risk of economic scars. This was stated by the director general of the IMF, Kristalina Georgieva, calling on governments to act to give everyone a chance. Governments, he continues, should push public investment “to ensure that everyone can benefit from the historic transformation of economies. To unlock this potential, countries will need to spend efficiently and have sufficient tax revenues.minimum tax for companies “.