Pandemic 'solidarity tax' on wealthy individuals or companies is on the table, says IMF

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Governments could consider a temporary Covid-19 recovery contribution, 'levied on high incomes or wealth”, the IMF has suggested.

Image: Andrew Harnik Image: Andrew Harnik GOVERNMENTS IN ADVANCED economies such as Ireland should consider a temporary solidarity tax on high earners or companies that performed well during the pandemic, the International Monetary Fund says.

“A whole menu of options” is available to policymakers in advanced economies, he said, including property and inheritance taxes as well as a Covid-19 contribution tax. In general, advanced economies should also consider making income taxes more progressive “and increase reliance on inheritance or gift taxes and property taxation,” according to the IMF report.Overall, the report highlights the importance of government intervention in combating the worst economic consequences of the pandemic.

#Open journalism No news is bad news Support The Journal Your contributions will help us continue to deliver the stories that are important to youHowever, “large scale fiscal actions” have staved off “a more severe global economic contraction, greater job losses, and higher social costs”. Intervention by central banks have kept interest rates low, pushing down borrowing costs for governments.

 

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How about tax the multinationals who are making a fortune from this and looks like they will for the foreseeable future

Inheritance tax is high enough as it is. Too unpopular in too many constituencies to be a runner methinks!

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