• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home News

IMF vindicates Corbyn: Higher income tax for rich reduces inequality without hitting economic growth

Jeremy Corbyn will be rubbing his hands after a new report by the International Monetary Fund backed Labour’s tax strategy and discredited the Conservatives’ approach. Higher income tax rates for rich would reduce inequality without impacting economic growth. The research revealed higher income tax rates for the rich would help reduce inequality without having an adverse […]

Jack Peat by Jack Peat
2017-10-11 15:42
in News, Politics
The London Economic

The London Economic

FacebookTwitterLinkedinEmailWhatsapp

Jeremy Corbyn will be rubbing his hands after a new report by the International Monetary Fund backed Labour’s tax strategy and discredited the Conservatives’ approach.

Higher income tax rates for rich would reduce inequality without impacting economic growth.

The research revealed higher income tax rates for the rich would help reduce inequality without having an adverse impact on growth.

The highly influential half-yearly fiscal monitor ridicules the Tories’ rationale for the reductions in tax for the highest earners in recent decades.

In a direct quote, the IMF said: “Empirical results do not support this argument, at least for levels of progressivity that are not excessive”.

The IMF insist there is no evidence that making the rich pay more tax would have an impact on growth – at least not in the 45 – 50 per cent bracket that Labour now propose. And the Washington body also calls for more progressive taxation to rebalance increasing inequality.

Labour proposed a new 45 per cent tax band on those earning more than £80,000 and a 50 per cent rate for those on more than £123,000.

RelatedPosts

Labour ads appear on Conservative Home webpage following Sue Gray report

Is there a gaping oversight in Sunak’s emergency cost of living package?

Kate Hoey says Brits want Boris to resign ‘because he delivered Brexit’

Tory MP says NHS staff probably partied like Downing Street officials during pandemic

Corbyn and the shadow chancellor, John McDonnell, said the proposed changes were needed to arrest rising income inequality – a line of argument supported by the IMF study.

Which will be particularly galling to the Tories who spent much of the Conservative Party Conference promoting a version of capitalism, now even the IMF sees as damaging.

John McDonnell reacted: “The IMF support the argument we made in the General Election for a fairer tax system. There is no evidence to support those who scaremonger about the effects of making the rich pay fairer tax.”

What a bunch of mad lefties… https://t.co/yq1rPjX1ej

— Ed Miliband (@Ed_Miliband) October 11, 2017

 

The Conservative Party aren’t the only ones sticking fingers in ears after this IMF report. The Trump administration planning massive tax relief for the very richest reacted angrily to the report which totally discredited their approach.

Past analysis by the rating agency Standard & Poor lends its weight to the IMF’s argument. Despite market economies requiring a degree of inequality to function, the research revealed that the widening gap between the wealthiest and everyone else has made economies more prone to boom-bust cycles and has slowed the recovery from the recession.

As a past IMF report summed it up: “a lifeboat carrying a few, surrounded by many treading water, risks capsizing”.

RELATED 

As mega rich walk away untainted, Monarch is BHS all over again

Austerity Britain – Homeless person dealing with cold…by living in a fridge A

In shocking car crash interview on LBC, Theresa May actually said she doesn’t think having no plan for Brexit is costly mistake

Virgin release Traingate footage that proves Corbyn told the truth about Traingate

Grime4Corbyn boosted Labour’s vote in snap general election

Tags: headline

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Heatmap reveals worst places in London for Japanese knotweed

Yob who told French traffic warden she was an ‘immigrant’ found guilty of hate crime

PMQs – It’s an unfair Cop as PM flies in to face heat over another Tory scandal

Quarrying of the ‘bluestones’ used at Stonehenge ‘took place 180 miles away in Wales 5,000 years ago’

Trump tweets support for Boris amid Parliament suspension

Quidditch league seeks rebrand to distance itself from JK Rowling

Woman holding baby smashed by massive wave as she stood on edge of pier

‘WTF is the BBC playing at?’ Kuenssberg called out over curious framing of sleaze row

Restaurant Review – Aladino’s

Gossip – Liverpool youngster leaving? Arsenal winger to Italy? Ex-Spurs man to Italy instead of Man Utd

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.