Report
Patrick Artus

Return to fiscal solvency in OECD countries: Why are “normal” taxation and inflation tax rejected, while taxation of young people through rising asset prices is accepted?

The fiscal deficit in OECD countries will be far higher in 2020 and 2021 than in past recessions. There is therefore currently a debate on the means to achieve a return to fiscal solvency. This has give n rise to a strange situation: There is a quite widespread rejection of a hike in "normal" taxes; An inflation tax is also rejected, which explains the choice made for central banks' mandates; Then there is the taxation of young people through a rise in asset prices: fiscal deficits are monetised, and the massive monetary creation leads to an excessive rise in financial and real estate asset prices, which is indeed a tax on young people who have to buy assets. Why does society reject “normal” taxation (of income and consumption) and inflationary tax while accepting taxation of young people through rising asset prices?
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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