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News Link • Government Debt & Financing

IMF Proposal to Tax Bank Deposits

 "The IMF has set off shockwaves this week in Washington by suggesting countries fight budget deficits by raising taxes. In its Fiscal Monitor report, subtitled "Taxing Times", the Fund advanced the idea of taxing the highest-income people and their assets to reinforce the legitimacy of spending cuts and fight against growing income inequalities." 

Before all those occupy supporters, rejoice and start their partying, the sober reality of the actual methods that the financial elites would use to implement revenue enhancement, needs a closer examination.

Contrast the interpretation from Europe with the broader assessment in, IMF Discusses A Super Tax Of 10% On All Savings In Eurozone. 
"The sharp deterioration of the public finances in many countries has revived interest in a "capital levy"— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). There have been illustrious supporters, including Pigou, Ricardo, Schumpeter, and—until he changed his mind—Keynes.

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