Taxing the rich to reduce income inequality helps the economy | National Union of Public and General Employees

Taxing the rich to reduce income inequality helps the economy

“The report debunks the myth that tax cuts for corporations and the wealthy are necessary for economy growth”, said James Clancy, National President NUPGE.

Ottawa (03 Mar. 2014) — An International Monetary Fund (IMF) report released this week found that taxing the wealthy to fund programs that reduce income inequality is good for the economy.

HIgher taxes for corporation and the wealthy don't slow growth, says IMF

According to the report, “lower net inequality is robustly correlated with faster and more durable growth.” The report also found measures to redistribute wealth, like higher taxes for the rich and large corporations don't slow growth.

“The report debunks the myth that tax cuts for corporations and the wealthy are necessary for economy growth”, said James Clancy, National President, National Union of Public and General Employees (NUPGE).

“People have long been suspicious of claims that tax cuts for large corporations and the wealthy were necessary for economy growth. Now the IMF, which aggressively pushed for tax cuts and austerity, has produced a report that admits those policies don't work.”

Position a major policy shift for IMF

Traditionally the IMF has made loans for countries experiencing financial difficulty conditional on their implementing policies that increased inequality. These have included drastic cuts to public services and privatizing public services.

The suggestion that governments could instead be asking the well off to pay their share is part a major shift for the IMF.

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE

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