The International Monetary Fund (IMF) said on Thursday that advanced economies can help reduce the coronavirus pandemic by using more progressive income, inheritance and property taxes, and taxing "excess" corporate profits. Inequality.
In its latest Fiscal Monitor report, the IMF pointed out that the pandemic has exacerbated existing inequalities in access to healthcare, education, and digital infrastructure, which may cause income disparity to persist for generations.
According to the report, most countries will need to increase their incomes to ensure access to the new coronavirus vaccine and improved services, while breaking the “vicious circle” of increasing inequality.
The report pointed out that to change the status quo, countries should focus on better investing in education, health and early childhood development, and strengthening social safety nets.
The IMF stated that in order to raise the necessary resources, advanced economies can increase the progressiveness of income tax and increase their reliance on inheritance tax/gift tax and property tax. At the same time, it can also consider "new crown epidemic recovery contribution" and "excess corporate profit tax." "And other means. If these are not enough, wealth tax is also an option.
The IMF stated that emerging markets and developing economies should focus on strengthening taxation capabilities to provide funding for more social expenditures.