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Started by JohnIlly on 11-Oct-2017 23:38:09
IMF: higher taxes for rich will cut inequality without hitting growth

https://www.theguardian.com/business/2017/oct/11/i
mf-higher-taxes-rich-inequality-jeremy-corbyn-labour-donald-trump


Higher income tax rates for the rich would help reduce inequality without having an adverse impact on growth, the International Monetary Fund has said.

The Washington-based IMF used its influential half-yearly fiscal monitor to demolish the argument that economic growth would suffer if governments in advanced Western countries forced the top 1% of earners to pay more tax.

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1OffManMental - 12 Oct 2017 00:29:03 (#1 of 84)

Why did they burn all that money though?

TinyMcOtter - 12 Oct 2017 01:16:40 (#2 of 84)

IMF?

Pah! International Marxist Front more like.

JerkinMcGherkin - 12 Oct 2017 01:29:00 (#3 of 84)

Impossible Missions Force

col2001 - 12 Oct 2017 06:47:22 (#4 of 84)

The argument has moved on.

The economics have never convinced: so it's no surprise.

Now, it's all about morality and personal merit and 'freedom'.

machiavelli - 12 Oct 2017 14:13:47 (#5 of 84)

But...but.. Laffer Curve....?

Rendered - 12 Oct 2017 14:14:50 (#6 of 84)

It's almost as if there aren't any rules and it's all made up.

1OffManMental - 12 Oct 2017 14:18:12 (#7 of 84)

I find people citing the Laffer curve as a reason to always lower taxes amazing. Do they think at all?

machiavelli - 12 Oct 2017 14:20:45 (#8 of 84)

I'd imagine that there is some validity in the Laffer Curve - there is, no doubt, a point beyond which tax rate rises are harmful. The point likely varies from place to place.

But equally, there must be a point below which tax rate reductions are harmful.

1OffManMental - 12 Oct 2017 14:32:59 (#9 of 84)

Exactly. At 0% and 100% tax rates you're going to raise bugger all. But laffer fans only focus on the hundred percent case and generalise that to "lowering taxes always raises more revenue".

machiavelli - 12 Oct 2017 14:35:51 (#10 of 84)

Anyhoo, I'd like to see what the yahoos in the Tory party have to say about the IMF rubbishing one of their tenets.

1OffManMental - 12 Oct 2017 14:39:00 (#11 of 84)

They're too busy drinking koolaid from children's skulls

ChankNolen - 12 Oct 2017 14:59:41 (#12 of 84)

As I always point out, the HMT modelling suggests the optimal tax take is generated by an upper band of 48%.

Taxing the rich's wealth, not income: that's the way to go. And in all likelihood the middle class need to pay more as well.

TRaney - 12 Oct 2017 15:04:47 (#13 of 84)

But apart from residential property wealth tax is an income tax, it just created an extra threshold on returns.

Brunothecat - 12 Oct 2017 15:08:57 (#14 of 84)

I'd imagine that there is some validity in the Laffer Curve - there is, no doubt, a point beyond which tax rate rises are harmful.

It can only ever represent a picture of what happens if you crank up tax rates while leaving all the dodges and loopholes available. Arguably, it is best seen as a reason to crack down on tax avoidance/evasion, its not a coherent argument against taxation as such.

col2001 - 12 Oct 2017 16:34:46 (#15 of 84)

Imagine government rhetoric and attitudes to privacy and surveillance of people's internet lives transferred to money-matters and tax-dodging...

JohnIlly - 12 Oct 2017 16:43:28 (#16 of 84)

The Laffer Curve is just a misspelling.

GreenFuture - 12 Oct 2017 21:54:47 (#17 of 84)

International Marxist Front more like.

Where do I sign up?

AdrianNTierney - 12 Oct 2017 22:52:32 (#18 of 84)

How come no one here ever seems to ask the pertinent question: How does reducing "inequality" help YOU?".

Never mind that no one ever asks - "Inequality in --- what?".

Just income? Or just wealth? Or ... what else?

JohnIlly - 12 Oct 2017 22:54:15 (#19 of 84)

How come no one here ever seems to ask the pertinent question: How does reducing "inequality" help YOU?".

Because we are not all totally self-centered.

AdrianNTierney - 12 Oct 2017 23:00:29 (#20 of 84)

And how does self-centeredness (or its opposite) correlate to "inequality"?

You haven't answered the question in any way, of course.

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