Making Multinationals and the Wealthy Pay
The poor and vulnerable are already suffering the most from the COVID-19 pandemic; they must not be left to carry the economic burden of rescue packages as well. It is time for those who have the most – and have long avoided paying their fair share – to start pulling their weight.
NEW YORK – The COVID-19 pandemic will leave the world economy bruised and bloody. And the wrong tax policies would compound the damage in the short term and impede longer-term recovery.
Just a few months into the crisis, public-sector balance sheets are already under severe strain. As lockdowns and other social-distancing protocols curtail economic activity, many advanced-country governments have launched large-scale monetary- and fiscal-stimulus measures. Meanwhile, tax revenues are plummeting and unemployment is skyrocketing, implying a steep rise in future government expenditure.
The outlook is especially bleak for developing countries, many of which lack the fiscal space to pursue stimulus and fear capital flight if they try. Some are even embracing fiscal austerity, which will make it virtually impossible to restart their economies and replenish government coffers.