The reason general income growth is not seen by most people in their salaries is because the top richest 1% get most of it. In Canada, 37% and in the United States, 47%, according to a new study released Wednesday (April 30) by the Organisation for Economic Co-operation and Development (OECD).
“The majority of the population [in OECD countries] cannot reconcile the aggregate income growth figures with the performance of their incomes” because the top richest 1% of the population has increased dramatically, according to the analysis of tax filings in 28 member countries with advanced economies.
“The crisis put a temporary halt to these trends – but it did not undo the previous surge in top incomes. On average, real incomes of the top 1% increased by 4% in 2010, while the lower 90% of the population saw their real incomes stagnate.”
“Without concerted policy action, the gap between the rich and poor is likely to grow even wider in the years ahead,” said OECD Secretary-General Angel Gurría in a press statement. “Therefore, it is all the more important to ensure that top earners contribute their fair share of taxes”.
Inequality is one of the issues that will be discussed at OECD Week from 5-7 May 2014, which brings together the annual Meeting of the OECD Council at Ministerial Level and the OECD Forum.
More information:
OECD press release – Top earners capturing growing share of total income in many countries, says OECD – here
FOCUS on Top Incomes and Taxation in OECD Countries: Was the crisis a game changer? (pdf) – here
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