Request on tax-free threshold causes tension among IMF and gov’t

IMF seeks to reduce the tax-free threshold for everyone, even for incomes above 40,000 euros

A comment made by a source of Greek Finance Ministry criticizing IMF for its requirements on  tax-free threshold will probably cause a rift between the Greek government and Greece’s lenders.

The IMF insists that the Greek government lowers significantly the tax-free threshold, even for incomes above 40,000 euros.

The Greek government seems to be against that, this is why a source of Finance Ministry commented harshly IMF’s request:

“Once more we were surprised by IMF’s stance. This time, the claims made by its officials constitute a global originality in economic policy. They argue that if the tax-free threshold is greatly lowered while still enabling all those with income above 40,000 euros to have it, then we help the poor, not the rich!

This unbelievable proposal – for which Adam Smith, John Maynard Keynes, Milton Friedman and other economists would have existential crisis…- proves that the supporter of world’s poor people, ie the Fund, does not negotiate with the appropriate seriousness!”.