ECB’s Lane Suggests States Could Tax the Rich in Inflation Fight

The European Central Bank’s chief economist has advice for governments wishing to support vulnerable groups amid soaring prices without further fueling inflation: tax the rich.

For both macroeconomic and fairness reasons, states should support the income and consumption of those households and businesses that suffer the most, Philip Lane told Austria’s Der Standard newspaper in an interview published Tuesday.

“The big question is whether part of this support should not be financed through tax increases for the better off,” he said. “This can be higher taxes for higher earners or for industries and companies that are highly profitable despite ...