Raising income taxes on the rich would reduce inequality, says IMF

Written by Liam Kirkaldy on 12 October 2017 in News

The IMF rejected the argument that raising taxes on the richest one per cent would damage growth

Money - Image credit: Fotolia

Raising income taxes on the rich would reduce inequality without damaging the prospects for growth, according to the IMF’s half-yearly fiscal monitor.

Suggesting wealth taxes should be considered by government, the IMF rejected the argument that raising taxes on the richest one per cent would damage growth.

It said: “Empirical results do not support this argument, at least for levels of progressivity that are not excessive.”


RELATED CONTENT


Labour shadow chancellor John McDonnell said the report proved the need for a more progressive tax system.

He said: “The IMF support the argument we made in the General Election for a fairer tax system. There is no evidence to support those who scaremonger about the effects of making the rich pay fairer tax.”

He added: “With every day that passes the case for a change of direction at the Treasury grows.

"Instead of engaging in infighting in his own party the chancellor should listen to Labour’s calls for fairer taxes and increased investment, so we will build an economy for the many not the few.”

The Labour manifesto included plans for a 45 per cent tax rate for those earning £80,000 or more per year and £50 per cent for those on more than £123,000 a year.

Tags

Categories

Related Articles

No-deal Brexit uncertainties hit the Scottish economy, report warns
18 April 2019

Report finds that uncertainty caused by threats of a no-deal Brexit hit the Scottish economy in the first quarter of 2019.

Union calls for more robust action in fight for renewables jobs as offshore summit announced
11 April 2019

Union calls for greater action as joint governmental summit on securing offshore contracts announced for Edinburgh.

MSPs seeking views on proposed changes to business rates system
9 April 2019

The Scottish Parliament’s Local Government and Communities Committee has launched an inquiry into the impact of the Non-Domestic Rates Bill

Related Sponsored Articles

Share this page