The Organisation for Economic Cooperation and Development (OECD) on Wednesday called for higher taxes on the world's wealthy, their assets, property and large corporations while reducing small countries' spiralling debts.
At the same time, the unelected group of 38 countries warned governments to rein in spending through greater fiscal discipline.
In economic outlook ReportThe Paris-based organisation said global gross domestic product (GDP) would expand by 3.2 percent, up from its previous forecast of 3.1 percent.
“Global output growth remains solid and inflation continues to moderate,” the twice-yearly report said.
U.S. and European central banks have begun slashing interest rates as inflation finally starts to calm after soaring following the coronavirus pandemic and Russia's invasion of Ukraine.
AFP Reports While upgrading its global GDP forecast, the OECD also warned of rising debt and called on governments to make “stronger efforts” to rein in spending and raise revenue through higher taxes.
Decisive fiscal action is needed to ensure debt sustainability, ensure governments have the room to respond to future shocks, and generate resources to help meet future spending pressures.
Governments face significant fiscal challenges due to rising debt, ageing populations, additional spending pressures arising from climate change mitigation and adaptation, plans to increase defense spending, and the need to fund new reforms.
The report also explained how funds are redistributed from the rich to the poor through government intervention.
“On the revenue side, many countries are calling for efforts to eliminate distortive tax expenditures and increase revenues from indirect, environmental and property taxes,” the organization said.
Punitive tax hikes on the world's wealthiest people and biggest corporations are nothing new.
US presidential candidate Kamala Harris is pushing for higher taxes on corporations and wealthy households, Breitbart News reports.
According to the American Tax Reform Association (ATR), Harris' economic plan would increase taxes by $5 trillion over 10 years.
France's new government, led by Prime Minister Michel Barnier, is also discussing higher taxes on the wealthy and big corporations as the country faces a huge budget deficit.
