Paying taxes to the rich to pay for the epidemic? Not a good idea, Nobel Economics explains

A growing number of politicians are asking the richest to assume a large share of the record-breaking burden (image: REUTERS / Gleb Garanich)

For Nobel Prize-winning economist Angus Dayton, A. Tax About is not a good way to pay off the debt of fate Universal epidemic And it would probably have become permanent if introduced.

“Those who earn too much” will be very difficult to implement “and will give rich people a huge incentive to avoid them – and they will avoid them,” said Diaton, a professor at Princeton University. In this world. The uk.

A growing number of politicians are asking rich people to consider a larger share of the record-breaking debt burden assumed by governments to sustain the economies impacted by Kovid-19. Hey International Monetary Fund Said that one Temporary tax Will help overcome social inequalities that have worsened the epidemic.

The author of the book “Deaths of Despair”, which he wrote in conjunction with his wife, the economist Anne Case, said in an interview that the single tax on money was “likely to be permanent”, as it happened with Income tax.

United Kingdom, London
Deaton heads a panel of experts in the UK that explains how to reduce inequalities (image: Reuters Nichols / file photo)

Britain introduced an income tax to finance the Napoleonic War, which is now one of the most important sources of revenue.

A decade after the British government’s austerity following the financial crisis, Dieton also recommended against cuts to social services, warning that financial austerity advocates had created a disaster by reducing funding for health and education.

Deaton heads a panel of experts in the UK that examines how to reduce inequalities, where young people and those with less education are lagging behind the rich. The Institute of Tax Studies planned to publish the survey’s findings in 2023.

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Dieton said that the epidemic has already increased America And in the United Kingdom. On the one hand, Education Becomes a more deterministic variable in people’s lives. Furthermore, unemployment is now less useful as an indicator of economic health. Although recovering from the recession caused by the epidemic creates jobs, Deaton said many more are being ignored.

“In economic expansion, it always increases, but it never rises as much as the previous peak,” Dieton said.

Muhammad Wayne

About the author: Muhammad Wayne

Wayne is a reporter who covers everything from oil trading to China's biggest conglomerates and technology companies. Originally from Chicago, he is a graduate of New York University's business and economic reporting program.

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