Raising taxes on rich won’t necessarily curb growth, says IMF

WASHINGTON: Advanced nations can reduce inequality without necessarily sacrificing growth by shifting more of the income-tax burden onto the rich, according to the International Monetary Fund (IMF).

There is no strong empirical evidence that moderately progressive tax systems harmed economic growth, the IMF said in the latest edition of its Fiscal Monitor. So-called progressive systems tax the rich at higher rates in an effort to redistribute income to those who are less well off.