EconomicsToo

This Guardian article reports on the IMF Fiscal Monitor that has said raising taxes on the richest would have a net positive impact on the economies of wealthy nations. The report states that higher taxes on the wealthy would reduce inequality and would not lead to a slow down in growth...as long as the tax was not excessively progressive, that is! Inequality remains one of the most serious issues the planet faces; some economic theory suggests that a more progressive tax system is the solution. Greater tax would be levied on the rich which is then distributed to lower income earners in the form of goods and services (merit and public); this may be in the form of cheaper healthcare or education. However, progressive taxation has been out of fashion since the 1980's. Why is this the case? Joseph Stiglitz shares some insightful reasons in "The Price of Inequality" (2012) and expresses that 'government capture' by corporate and wealthy interests means that those