Over the past decade, inequality has become one of the most complex and vexing challenges in the global economy.
Inequality of opportunity. Inequality across generations. Inequality between women and men. And, of course, inequality of income and wealth . They are all present in our societies and—unfortunately— in many countries they are growing.
The good news is we have tools to address these issues, provided we have the will to do so. Despite the political difficulty of implementing reforms the payoffs for growth and productivity are worth the effort.
Policies to tackle inequality
Tackling inequality requires a rethink. First, on fiscal policies and progressive taxation.
Progressive taxation is a key component of effective fiscal policy. At the top of the income distribution, our research shows that marginal tax rates can be raised without sacrificing economic growth.
Utilising digital tools in tax collection can also…
Source: Thisday Newspaper