FOR once, The Daily Mail and the Guardian, British newspapers of the right and left, agree. In the former, Alex Brummer says "IMF's new line of thinking of tax should please Corbyn & co" while the latter says that the IMF "analysis supports tax strategy of Labour in UK". Both are responding to the IMF's fiscal monitor which does indeed say that
there would appear to be scope for increasing the progressivity of income taxation without significantly hurting growth for countries wishing to enhance income redistribution.
The report details how income tax progressivity in advanced economies declined in the 1980s and 1990s and that the tax system has done little to reduce inequality in...Continue reading