OECD: Israel's rich-poor gap among widest in West

The OECD found that the income gap in Israel is 14 to 1, the same as in the US.

A special report published today by the OECD entitled "Divided We Stand: Why Inequality Keeps Rising," which examines the growing gap between rich and poor in member countries, slams Israel for having one of the widest gaps.

The report notes, "The income gap has risen even in traditionally egalitarian countries, such as Germany, Denmark and Sweden, from 5 to 1 in the 1980s to 6 to 1 today. 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."

The report continued, "In Chile and Mexico, the incomes of the richest are still more than 25 times those of the poorest, the highest in the OECD, but have finally started dropping. Income inequality is much higher in some major emerging economies outside the OECD area. 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."

The introduction to the report concludes, "The OECD underlines 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, eliminating tax deductions, and reassessing the role of taxes in all forms of property and wealth."

Published by Globes, Israel business news - www.globes-online.com - on December 5, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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