Poll: Should older people pay higher taxes to support young workers?
The IMF’s boss says such a measure could help close Europe’s generational divide.
THE HEAD OF the International Monetary Fund (IMF) suggested that European tax systems should be set up in such a way that older people contribute more to provide better support for young workers.
IMF managing director Christine Lagarde made the remarks at last week’s Davos gathering in the Swiss Alps.
She was speaking after the global monetary organisation published a report on Europe’s generational gap, which showed that the average incomes of working-age citizens have stagnated since the financial crash, while incomes for those aged 65 and older have risen by 10%.
Largarde said to help close the gap, policymakers should introduce a wealth tax that would target older generations and could “help fund much-needed social programmes for younger citizens”.
However, the IMF leader acknowledged that such a blanket approach wouldn’t be all that straightforward, noting that such a measure would “need to be tailored to the needs of individual countries, recognise political realities and stay within a budget”.
With that in mind, we’re asking Fora readers this week: Should older people pay higher taxes to support younger workers?
