IMF tax stance is music to Labour economists’ ears | Larry Elliott

Nicolas Collignon Economics 0 Comments

While they have never been bedfellows, the IMF’s recent report supporting higher taxes for the rich will feel like an endorsement for John McDonnell
To put it mildly, the Labour party’s relationship with the International Monetary Fund has not always been a happy one.
Memories of 1976, when an IMF team forced Jim Callaghan’s government to cut public spending in return for an emergency loan, are powerful to this day.
Related: IMF: higher taxes for rich will cut inequality without hitting growth
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Will world growth continue – or are we heading for a slowdown? | Nouriel Roubini

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Following IMF’s World Economic Outlook, here are three scenarios for global economy in medium term
For the past few years, the global economy has been oscillating between periods of acceleration (when growth is positive and strengthening) and periods of deceleration (when growth is positive but weakening). After more than a year of acceleration, is the world heading towards another slowdown, or will the recovery persist?
The current upswing in growth and equity markets has been going strong since the summer of 2016. Despite a brief hiccup after the Brexit vote, the acceleration endured not only Donald Trump’s election as US president but the heightening policy uncertainty and geopolitical chaos that he has generated. In response to this apparent resilience, the International Monetary Fund, which in recent years had characterised global growth as the “new mediocre”, upgraded its World Economic Outlook in July.
Related: Won't get fooled again: IMF warning shows it's learned fr..

The bottom line of US tax reform, in two charts

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The push for “tax reform” in the US often seems convoluted and confusing. It doesn’t have to be.

While some of the details are complex, at its essence, the Republican plan to overhaul the US federal tax system can be understood in two charts. These charts use data from preliminary projections by the independent Tax Policy Center on the most recent Republican proposal.

The first is an estimate of the average effect of the tax cuts on after-tax income in 2018, by household income level:

This analysis suggests the wealthiest Americans would see their incomes rise most in both relative and absolute terms. The average household in the top 1% would see a 8.5% increase in their income, compared with a 1% increase for middle-income households.

Not every family will benefit equally. For example, households with children would receive a larger break than those without. Also, over the long-term, the Tax Policy Center projects households in the 80th to 95th percentage of income are projected..

How Billionaires become Billionaires

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By James Petras, 99GetSmart

America has the greatest inequalities, highest mortality rate, most regressive taxes, and largest public subsidies for bankers and billionaires of any developed capitalist country.

In this essay we will discuss the socio-economic roots of inequalities and the relation between the concentration of wealth and the downward mobility of the working and salaried classes.

How the Billionaires become Billionaires

One of the most likely sources of billionaire wealth is through tax evasion in all of its guises and forms.

Contrary to the propaganda pushed by the business press, between 67% and 72% percent of corporations had zero tax liabilities after credits and exemptions … while their workers and employees paid between 25 – 30% in taxes. The rate for the minority of corporations, which paid any tax, was 14%.

According to the US Internal Revenue Service, billionaire tax evasion amounts to $458 billion dollars in lost public revenues every year – almost a trilli..

The Guardian view on Brexit and the Bank: the challenge of populism | Editorial

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It is 20 years since the Bank of England gained independence. It may not survive the nationalist pressures of leaving the EU
Bank of England independence, announced just five days after Labour’s 1997 landslide victory, was a tightly kept secret of the kind that Gordon Brown made his trademark. Yet it was almost at once accepted as the last, critical piece of a framework to protect the UK economy from the inflationary tendencies of weak governments on a par with joining the European Community 25 years previously. Today, at a conference marking the 20th anniversary of his coup, Mr Brown added another claim to its significance as a force for stability: only the discipline of independence had enabled him to keep sterling out of the eurozone.
But like other speakers both before and after him at today’s conference, the former chancellor warned that just as the post-crash recession had played a significant role in Brexit, so might it undermine the case for Bank independence: the argument for ..

“Economie, mon Amour” : conférence gesticulée sur les rouages du capitalisme

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Adrien Chaudot était cadre dans l’industrie. De sa rencontre avec Camille et par l’évolution de ses convictions économiques, il décide de tout plaquer et de revenir à la terre. Dans sa conférence gesticulée, il nous fait part de son expérience personnelle et de son savoir pour dénoncer l’illusion, l’absurdité et la futilité du système économique actuel.

Conférence Gesticulée : « La conférence gesticulée est un style de spectacle se revendiquant de l’éducation populaire, à l’intersection entre le théâtre et la conférence dont la propriété essentielle est de mêler le récit d’éléments vécus par les conférenciers ou conférencières (savoir Chaud) et des éléments de théorie (savoir froid). La démarche étant de donner des clés de compréhension de la société et de développer l’esprit critique des spectateurs. » (Wikipédia)

Un seul modèle économique pour tout l’Occident

Le modèle économique capitaliste repose sur quelques piliers distincts : Productivité, Compétitivité, Croissance, Profit. S..