OECD Report Highlights Urgent Need To Tackle Gap Between Rich, Poor
Tuesday, 06 December 2011 | 00:00
The Organization For Economic Co-operation and Development, or OECD, on Monday urged the governments to act quickly to reduce the gap between rich and poor, that has now reached its highest level for over over 30 years in advanced economies.
A new report by the OECD found that the income gap has risen even in traditionally egalitarian countries, such as Germany, Denmark and Sweden, to 6 to 1 today from 5 to 1 in the 1980s. The gap is 10 to 1 in Italy, Japan, Korea and the United Kingdom, and higher still, at 14 to 1 in Israel, Turkey and the United States.
At 50 to 1, Brazil's income gap remains much higher than in many other countries, although it has been falling significantly over the past decade, it noted.
The OECD stressed on the need for governments to review their tax systems to ensure that wealthier individuals contribute their fair share of the tax burden. This can be achieved by raising marginal tax rates on the rich but also improving tax compliance and eliminating tax deductions, the report said.
Source: RTT News
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