Tax cuts for the rich don’t help the rest. Don’t take my word for it, ask the IMF | Greg Jericho

IMF study finds that the type of tax cuts introduced last year are too weak to raise the welfare of most of the population and never pay for themselves

A new study by the IMF examining the impacts of tax cuts has found that while lowering tax rates for the rich will stimulate the economy, it does so at the great cost of increased inequality.

Most damningly, it finds the benefits of tax cuts targeted at the wealthiest 25% – such as the one the Turnbull government brought in last year – are far too weak to raise the welfare of the majority of the population and also never pay for themselves.

Related: Beware tax cuts for ‘Middle Australia’. Above-average earners benefit most

Related: Company tax cut cost reaches $65.4bn over 10 years

Related: Is it time to make the Medicare levy progressive? High income earners can afford it | Greg Jericho

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