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Yen Fall Deepens as Topix Nears Record High
The IMF called on the US to “urgently” address its growing tax burden, asking lawmakers to raise taxes to cover the gap.
The fund’s projections showed the debt-to-GDP ratio of the world’s largest economy would hit 140 percent by 2032 — well beyond its previous record — due to successive fiscal deficits projected for the coming years. The finding came as part of the IMF’s annual Article IV health check of the U.S. economy.
“Such high deficits and debts create a growing risk for the US and the global economy,” the organization said.
“These chronic budget deficits represent a significant and persistent policy misalignment that needs to be addressed urgently.”
The fund said politicians need to “carefully consider” a range of tax increases, including on the incomes of people earning less than $400,000 annually. President Joe Biden has said this group will no longer pay taxes if he wins a second term in the White House.