IMF sees slow growth, tax hikes soon

Some how, some way, your taxes will go up.

From TheStar.com

OTTAWA–The International Monetary Fund says most countries will need to raise taxes to pay off the trillions of dollars they spent fighting the global recession.

IMF chief economist Olivier Blanchard says in an article to be published today that governments acted properly in ramping up spending to stop the worst slump since World War II.

Soon, he says, nearly all countries will have to raise taxes to pay the recovery bill.

Canada’s Finance Minister Jim Flaherty has rejected the idea he will have to raise taxes to pay off about $47 billion in stimulus spending.

Blanchard, meanwhile, says with the recession virtually over, what is left are deep scars that will take years to heal.

He sees positive growth for most countries in the next few years, but says it will be sluggish.

Read the rest:

http://www.thestar.com/business/article/682712

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