Tax Revenues Held Up Even as Economies Crashed During Pandemic

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Even as economies crashed during the pandemic, tax revenues in rich countries rose as job losses were concentrated in low-wage employment

that accompanied the first surge of Covid-19 infections, and contrasts with the global financial crisis, when revenues fell as a share of economic output, an outcome more typical of recessions. Without that resilience in tax revenues, governments would have had to borrow even more than they did.

 

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Record tax revenue for several years in a row now. Don’t ever see that stated in headlines.

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