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OECD to Canada: Tax the rich to close fast-growing income gap

Canada’s income gap is among the fastest growing in the developed world, a new report from the Organisation for Economic Co-operation and Development report has found. The top 1% in Canada captured 37% of the overall income growth in the last three decades. Only the United States has a worse record, whose wealthy plutocrats took 47% of […]

Canada’s income gap is among the fastest growing in the developed world, a new report from the Organisation for Economic Co-operation and Development report has found.

The top 1% in Canada captured 37% of the overall income growth in the last three decades. Only the United States has a worse record, whose wealthy plutocrats took 47% of the total income growth in the same period.

The OECD explains that “changes in tax policies have contributed to the rise in top incomes and may have also driven the change in compensation practices in turn.”

And the solution to this growing income gap, says the OECD report, is for governments to implement tax reforms by “changing tax rules for top income recipients,” including raising the marginal tax rate on top earners, “abolishing or scaling back” tax credits and loopholes (such as stock options), and developing policies to increase transparency and reduce international tax avoidance. 

Here’s how the The Wall Street Journal summed it up:

 “OECD calls for tax overhaul to tackle income inequality: Research body says very rich should pay more tax”

Photo: al40. Used under a Creative Commons BY-2.0 licence.

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