Tax wealth to shrink inequality - IMF | Sunday Observer

Tax wealth to shrink inequality - IMF

11 April, 2021

Governments should consider raising taxes on the wealthy to help cushion the cost of combating the Covid-19 pandemic, the International Monetary Fund said.

It suggested a temporary increase in taxes on wealth or high incomes could help tackle inequalities that have widened due to the crisis.

In its fiscal report, it said the move would help the worst affected by the pandemic feel a sense of cohesion. But the organisation urged governments to “carefully assess trade-offs”. The International Monetary Fund (IMF) pointed to the reform of current policies on inheritance taxes or property, for example, before turning to wealth taxes. “To help meet pandemic-related financing needs, policymakers could consider a temporary Covid-19 recovery contribution, levied on high incomes or wealth,” the report said. - BBC