The IMF wants a pre-distribution and redistribution policy. The center of the supposedly holistic approach is of course higher taxes.
Give everyone a fair shot
The IMF wants to give everyone a fair shot.
The COVID-19 pandemic is exacerbating the vicious circle of inequality. To break this pattern and give everyone a fair view of prosperity, governments need to improve access to basic public services such as health care (including vaccination) and education, and strengthen redistributive policies.
For most countries, this would require increasing additional revenue and improving the efficiency of spending.
Improving access to basic public services requires additional resources that can be mobilized by depending on the circumstances of the country sStrengthening the overall tax capacity. Many countries could rely on it more Property and inheritance taxes. Countries could too Increase in tax progressiveness how some governments have space Increase in the highest marginal income tax rateswhile others could concentrate Eliminate loopholes in capital income taxation. In addition, governments could consider a survey temporarily COVID-19 recovery contributions as Personal Income Tax Supplements for high-income households and Corporate tax modernization. In particular, additional income could be generated in emerging and low-income countries Excise taxes Fund social spending. In addition, low-income countries need support from the international community to help with funding and implementation Taxation from own cultivation and spending reforms.
In some countries public support for better access to basic services, financed by higher taxes, was strong and is likely to increase with the pandemic. A recent survey in the US shows that those who have personally experienced the effects of COVID-19 from illness or unemployment have a stronger preference for more progressive taxation.
These systems always start with a promise to “tax the rich”. In practice, it never stops there.
To support socialist redistribution programs, taxation inevitably dips deeper and deeper into the middle class.
You can see that there are more “guaranteed income” suggestions.
And the ideas keep getting crazier like AOC’s and Al Gore’s plan to spend $ 90 trillion to save the earth from oceans rising three inches in the next 50 years.
I assure you that $ 90 trillion is not going to come from the rich or corporations.
The ultimate goal is to fund environmental nonsense and make sure Jeff Bezos doesn’t make more than the bottom 200 workers on Amazon.
Massive tax increases
Yesterday I commented: Prepare yourself for three things: Big government, huge boondoggles, massive taxes
Several readers wanted me to define massive taxes on the false belief that the proposals will only affect millionaires.
It won’t stop there because it never stops. And look at the huge basket: wealth taxes, corporate taxes, capital gains taxes, death taxes, consumption taxes, value added taxes (VAT), property taxes.
Illinois has 6,963 tax authorities, but the state is broke with bankrupt pension plans.
Nothing is ever set in Illinois. But guess what the alleged solution is.
The governor wants higher taxes. However, high taxes are the reason people are fleeing Illinois.
On October 5, 2019, I wrote Escape Illinois: Get the hell out now, we are.
I’m happy to say I’m not in Illinois.
California progressives have their eyes fixed on an exit tax. They want to haunt everyone who has lived and moved in California.
For more information, see California Looks For Wealth Tax To Soak The Rich, Even Those Who Go.
Don’t tell me these tax hikes only apply to the rich because they don’t.
It will never stop because politicians will come up with an endless parade of projects that can be funded through higher taxes.
To give everyone a “fair shot”, the IMF wants the Robinhood government to be in control of who is rich, who is poor and who has to be more equal. Inevitably, the middle class suffers.
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