International economists' group recommends raising taxes on higher-income Americans | iNFOnews | Thompson-Okanagan's News Source
Subscribe

Would you like to subscribe to our newsletter?

International economists' group recommends raising taxes on higher-income Americans

WASHINGTON - An international group of economists is recommending that the United States adopt policies that would make higher-income Americans pay more in taxes to help boost the U.S. economy.

The Organization for Economic Co-Operation and Development favours eliminating some tax breaks for high-income individuals on mortgage interest and health insurance. It also proposes reducing tax breaks corporations receive when they borrow to make investments.

Some of the ideas the group advocated in its latest survey have been championed by the Obama administration. The Paris-based group also endorsed job training proposals in the administration's 2013 budget and praised its efforts to expand mortgage modification programs to combat foreclosures.

The OECD tends to advocate left-leaning economic policies. The endorsements are unlikely to sway Republicans in Congress who have opposed proposals the Obama administration has pushed.

The group is composed of 34 of the world's leading industrialized nations. It was begun in 1948 as a European organization created to help administer the Marshall Plan for the reconstruction of Europe after World War II. In 1961, it expanded to include leading industrialized countries around the world. The organization's goal is to promote economic practices that promote growth.

Twice a year the group publishes global growth forecasts. The most recent of those forecasts in May warned that the euro zone region could contract by as much as 2 per cent this year unless more forceful action was taken to deal with the European debt crisis.

The OECD predicts the U.S. economy will grow 2.4 per cent this year and 2.6 per cent in 2013. While that's only modest growth, it would represent improvement from last year's 1.7 per cent growth rate for the U.S.

In Tuesday's report, the group's economists made a number of broad recommendations aimed at improving U.S. growth prospects and dealing with such issues as growing income inequality and long-term unemployment.

Among them:

— The Federal Reserve's interest rate policies should continue to support economic growth.

— Congress and the Obama administration should strike an agreement that would avoid a sharp jump in tax rates and across-the-board spending cuts. Those are scheduled to go into effect at the end of the year if a deal isn't reached.

— Various programs proposed by the administration's budget request in February for dealing with the unemployed "should be implemented without delay."

News from © The Associated Press, 2012
The Associated Press

  • Popular vernon News
  • 'I’m blown away:' Kamloops Ebus driver reacts to viral TikTok video
    A Kamloops Ebus driver says he doesn’t know how to feel after thousands of people watched a TikTok and left positive messages for him on what he considered to be just another day at work.
  • Large blaze engulfs Lake Country house
    A large blaze that could be seen across Lake Country erupted from a house last night. Witnesses started reporting smoke and flames on social media at roughly 10 p.m. last night, Dec. 3 at a
  • Naughty Penticton Santa living large after mall firing
    A South Okanagan Santa doesn’t like the term “naughty” to describe a series of photos that got him fired from a mall years ago. He prefers the term “eye catching.&rdq
  • Person bear sprayed at Sahali store in Kamloops
    A person was blasted with bear spray by an alleged thief at a Sahali store last weekend. Police responded to the location on the 1200-block of Summit Drive where a woman released a can of be
  • The Stock Pot Café: a hidden Kamloops gem
    A warm, family-oriented restaurant can be found tucked away in a Kamloops industrial park. Despite its location far away from the main restaurant hubs, The Stock Pot Café draws custom
View Site in: Desktop | Mobile