The International Monetary Fund said in a report Thursday that the U.S. economy “has turned in a remarkable performance over the past few years,” but added that there is now “a pressing need to reverse the ongoing increase in public debt-GDP ratio.”
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To accomplish that shift over the course of several years, the IMF report said that the U.S. has a number of tax and spending options. “However,” the report said, “policies will need to go beyond finding efficiencies in discretionary, non-defense federal spending. Policymakers will need to carefully consider raising indirect taxes, progressively increasing income taxes (including for those earning less than US$400,000 per year), eliminating a range of tax expenditures, and reforming entitlement programs. Putting these measures in place will necessitate taking difficult political decisions over the course of multiple years.”
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The report also called for lawmakers to take steps to avoid the annual spending fights and debt-limit showdowns that have become so common in recent years, saying that they “create systemic risks to the U.S. and global economy that are entirely avoidable.”
https://finance.yahoo.com/news/imf-warns-pressing-address-u-230756017.html
I argued for a long time that the US of A needs to increase taxes. Urgently. Otherwise, the government bond risk premiums will rise and uncle USD will go down the drain long-term.
