I have written about the worldwide tax hike on the rich more than once, but history is beginning to gain more and more interesting momentum. Now the IMF supports this idea.
Let me remind you that recently, Janet Yellen came up with a proposal to establish a minimum corporate tax rate for the G20 to make it difficult for large multinational corporations (in particular, American ones) to avoid taxes.
Germany, France, and now the IMF itself publicly supported the global tax hike.
The latest IMF report noted that inequality has increased since the start of the pandemic, and therefore, in all countries, high-income people and companies must support vulnerable populations. As recommended measures, the IMF proposes to countries raising income taxes, taxes on property and inheritance, as well as introducing an additional tax on excess profits. As they say, everyone has debts, it's just that many don't know about it yet 😉
Vitor Gaspar, head of the IMF's finance department, likened tax increases on the rich to "donations" to "social solidarity." He said that it is worth targeting those people and companies whose income grew during the pandemic. The industries that started working during the pandemic are likely to become the drivers of economic growth in the coming years. And imposing additional taxes on such companies is not the most effective thing, IMO.
The IMF argues that these "solidarity" measures should be temporary and will be canceled after the economic recovery. But there is one caveat.
When governments introduce support programs and fund them at the expense of the rich, undoing all of this is far from easy. Leftist ideas of supporting the poor are becoming more and more popular with politicians every month. And so far this process is almost impossible to reverse.
What am I leading to? I think that the increase in taxes on the rich recommended by the US Treasury and the IMF will in most cases turn from temporary to permanent.
The world is entering a completely new era. We are waiting for a performance called "Payback of Debts." In the first act, we will observe attempts by large companies to evade taxes. And in the second act developed countries will begin to force others to raise taxes. What actors will benefit from this situation is still unknown. And will they win?