Economists think that tax increases or cuts are not necessary for the time being | NOW

Despite the billions costing corona support package from the cabinet, tax increases or cutbacks are not necessary for the time being to get public finances in order, ING writes on Wednesday, based on talks with ten leading economists.

The treasury still offers more than enough room for temporary financial support, they believe. Some of them think it is important to increase or cut taxes after the corona crisis.

According to others, even then it is not necessary to increase the burden on citizens and businesses or to cut expenditure.

Because the annual income and expenditure are more or less in balance, the current corona expenditure has only a relatively limited impact on the national debt.

Opinions about the labor market and business are divided

ING also asked the economists about their views on the labor market and business. The central question was whether both should move with the changes brought about by the corona crisis, such as increased working from home and online shopping.

Opinions are somewhat more divided about this. Some of the economists surveyed think that it is time for a restructuring, whereby companies and workers should focus more on sectors with more jobs and turnover. According to them, the crisis will continue for some time and if employers and employees move along, this will generate more economic growth in the long term.

The other group thinks that in the event of a change there is a risk that jobs and companies that are viable in the long term will be lost.

ING: Don’t rebuild the economy until the crisis is over

ING itself adds that if there is a transformation of the economy, this should only happen when the crisis is over. This should prevent the economy from taking two major blows at the same time.

For the investigation, the bank spoke with Coen Teulings, Sweder van Wijnbergen, Lex Hoogduin and Willem Buiter, among others.


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