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IMF: higher taxes for rich will cut inequality without hitting growth

Analysis supports tax strategy of Jeremy Corbyn’s Labour in UK – and undermines that of Donald Trump in US

Higher income tax rates for the rich would help reduce inequality without having an adverse impact on growth, the International Monetary Fund has said.

In an analysis certain to be seized on by Labour as backing for its tax strategy, the IMF used its influential half-yearly fiscal monitor to attack the rationale for the reductions in tax for the highest earners in recent decades.

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