IMF told how to quickly restore economy

The International Monetary Fund advises to spend money on vaccination from coronavirus to restore the economy, reports Reuters.

According to the IMF estimates, if the virus is soon controlled by vaccination, by 2025, additional tax revenues of developed economies will reach a trillion dollars.

In the IMF, it is noted that by such a scenario of world GDP will increase by 9 trillion dollars by 2025, since the business will be able to resume work before.

At the moment, according to IMF estimates, countries have already spent about 16 trillion dollars on support programs. Of these, 10 trillion are additional costs and lost profits, another 6 trillion – government loans and capital infusion for business.

Also in the IMF, they are invited to charge the “super-profile” tax, which companies received, in particular pharmaceutical, during a pandemic. The “super-profile” tax could replace standard corporate taxes or become a supplement to them. As an example of such solutions, MFV brought a temporary increase in income taxes from the most wealthy people in Germany in 1991, in Australia in 2011 and in Japan in 2013.

States need money, since the pandemic requires an increase in social spending. The sources of budget replenishment, according to the IMF, could also be an introduction (strengthening) of the progressive taxation scale, or even the introduction of wealth tax.

In addition, the Foundation proposed to make income taxes more progressive (the more you get – the greater the percentage you pay).