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Against the crisis, the IMF advises targeting aid and increasing taxes for the richest

2020-10-14T14:40:04.516Z


The international institution advises states to work on increasing taxes "for the wealthiest households and very profitable businesses".


Governments must continue to help the most vulnerable during this crisis but to meet the growing needs for financial resources, they could raise taxes for wealthier families and businesses, recommends the International Monetary Fund on Wednesday.

Spending must be more targeted in favor of the jobs of tomorrow, believes the Washington institution in its report on budgetary surveillance published as part of its autumn meetings which are held in virtual.

Read also: The Covid-19, a new indicator of the impact of inequalities on health

Governments have made an unprecedented financial effort, injecting nearly $ 12 trillion into the global economy at the start of the pandemic.

While country deficits have increased sharply, "

many countries must (now) do more with less, which creates growing budgetary constraints

," said Vitor Gaspar, head of budgetary affairs at the IMF.

In a blog accompanying the report, he believes that policymakers "

should be more selective

" by "

gradually

"

abandoning

support for jobs in old sectors to allocate funds to training to enable the unemployed to access the jobs of tomorrow. .

By investing in more environmentally friendly infrastructure projects, governments will create the jobs in question.

In addition, "

governments should (...) consider higher taxes for the wealthiest households and very profitable businesses

," said Vitor Gaspar who co-signed the text with his deputy Paulo Medas and two IMF economists, John Ralyea and Elif Ture.

This additional income would help pay for essential services, they say, citing health, social safety nets "

during a crisis that disproportionately affects the poorest in society

".

However, these measures should not remain in force in the long term: "

Governments will have to promote recovery while addressing the aftermath of the crisis - including large budget deficits and high levels of public debt,

" warns the IMF.

Read also: The recovery of the global economy will be slow

Source: lefigaro

All news articles on 2020-10-14

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