Shocking proposal by the IMF: 10% single tax on savings
14.10.2013
12:11
According to analysts, leading economists (Pigou, Ricardo, Schumpeter and Keynes, until he changed his mind) have argued it would be useful and fair, as a one-off measure that may be better than the default
The idea was hidden in the same report of the international organization which provided for a 6.5 billion euros budget gap for Greece
The IMF proposal that was concealed in the same report of the international organization which predicted for a 6.5 billion euros budget gap for Greece is beginning to cause a heated debate. It predicts for the imposition of a one-off capital levy of 10% on individuals in order for countries to return to the debt levels of 2007, before the outbreak of the economic crisis.
In a chapter entitled "Did we take lessons from the crisis?", on page 49 of the report, the authors pose a "capital contribution" issue, according to which, the sharp deterioration of public finances in many countries has become a cause to revive interest in a one-time levy on private wealth, as an emergency measure to restore debt sustainability.
According to analysts, leading economists (Pigou, Ricardo, Schumpeter and Keynes, until he changed his mind) have argued it would be useful and fair, as a one-off measure that may be better than the default. This is a cost borne by all the capitalists and not only bondholders, and there is international experience as such contributions were widely adopted in Europe after the First World War, but also Germany and Japan after the Second World War.
They estimate that the tax rate required to reduce public debt to pre-crisis levels will not exceed 10%. Their basis is a sample of the 15 Eurozone countries and believe that the debt will be reduced to the levels before the end of 2007 if imposed in «households with positive net wealth.»
The IMF proposal that was concealed in the same report of the international organization which predicted for a 6.5 billion euros budget gap for Greece is beginning to cause a heated debate. It predicts for the imposition of a one-off capital levy of 10% on individuals in order for countries to return to the debt levels of 2007, before the outbreak of the economic crisis.
In a chapter entitled "Did we take lessons from the crisis?", on page 49 of the report, the authors pose a "capital contribution" issue, according to which, the sharp deterioration of public finances in many countries has become a cause to revive interest in a one-time levy on private wealth, as an emergency measure to restore debt sustainability.
According to analysts, leading economists (Pigou, Ricardo, Schumpeter and Keynes, until he changed his mind) have argued it would be useful and fair, as a one-off measure that may be better than the default. This is a cost borne by all the capitalists and not only bondholders, and there is international experience as such contributions were widely adopted in Europe after the First World War, but also Germany and Japan after the Second World War.
They estimate that the tax rate required to reduce public debt to pre-crisis levels will not exceed 10%. Their basis is a sample of the 15 Eurozone countries and believe that the debt will be reduced to the levels before the end of 2007 if imposed in «households with positive net wealth.»
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