Is a solidarity tax on the economic winners of the pandemic a good idea?

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The International Monetary Fund this week advocated a ‘temporary Covid-19 recovery contribution’ to be levied on those companies and individuals that have benefited financially during the pandemic. Is it an idea whose time has come? Ben Chu investigates

economics. The fund was associated with the so-called Washington Consensus, which held that countries should attempt to deregulate their economies, open themselves up to foreign trade and international capital flows, balance their budgets and keep taxes low.has undergone an intellectual revolution. The secretariat of the Washington-based multilateral institution remains strongly in favour of free trade, but it is now much more sceptical of the benefits of uninhibited capital flows.

 

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