Treasury
3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp 3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp 3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp 3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp 3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp 3-MO 4.21% -1bp 6-MO 4.28% -2bp 1-YR 4.46% -1bp 2-YR 4.79% -5bp 3-YR 4.88% -9bp 5-YR 5.03% -3bp 7-YR 5.15% -4bp 10-YR 5.27% -4bp 20-YR 5.68% -2bp 30-YR 5.64% -2bp
US Treasury par yield curve · Oct 6 · Source: U.S. Treasury
Tuesday, October 6, 2026
U.S. Edition
MONEY & WORLD
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Tax design

IMF models a 2.1% to 2.7% long-run GDP gain from removing tax penalties on investment

Money & World
The Editorial Team ·
The International Monetary Fund name and seal on a wall at its Washington headquarters.
Photo: Marek Ślusarczyk (Tupungato) Photo portfolio / Wikimedia Commons (CC BY 3.0)

The International Monetary Fund estimates that removing tax-induced increases in the cost of capital could raise long-run GDP by 2.1% to 2.7%.

That is a model result.

The October Fiscal Monitor argues for revenue-neutral reforms inside existing tax systems. It estimates that reducing VAT distortions could produce welfare gains up to 0.8% of GDP in emerging and developing economies.

Stronger work incentives could raise employment rates by about 1.2 percentage points there and 0.8 point in advanced economies.

Administration matters too. Countries at the 67th percentile of operational tax-administration strength collect about 1.7 percentage points of GDP more than countries at the 33rd percentile, the report says.

The report focuses on faster investment-cost recovery, prompt VAT refunds, better-targeted research incentives and lower compliance burdens.

The document: IMF Fiscal Monitor, Taxing Better to Boost Growth, executive summary, October 2026.

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