Share

Income redistribution

Over the past decades, household incomes have become more unequally distributed in most OECD countries. Taxes and transfers redistribute income from richer to poorer households in all OECD countries, lowering inequality.

Cash transfers account for the bulk of this redistribution. But the equalising effect of taxes and transfers varies widely across the OECD.

Size of transfers matter, but countries also differ in targeting to low-income households.

Redistribution has declined for almost all available OECD countries since the mid-1990s. This decline was largely driven by transfers, in particular insurance transfers.

While reforms to personal income taxes have had a much smaller impact.

More generally, tax and transfer reforms should be forward-looking, taking into account the rapidly changing context in which policy operates, not least technological developments, changes in the nature of work as well as ageing populations and the associated pressures on government budgets.

Social protection systems should adapt to the emergence of non-standard forms of work. Technological change, among other factors, has led to an increase in non-standard form of work and reduced the coverage of traditional social protection systems that are often based on the model of full-time permanent work for a single employer.

Tax policy also needs to reflect rising top incomes and private wealth among ageing populations along with ongoing progress in international cooperation on taxation. Broadening tax bases and improving compliance might be a way to increase the tax collected from this group by limiting the scope for avoidance.

Over the past decades, household incomes have become more unequally distributed in most OECD countries. Taxes and transfers redistribute income from richer to poorer households in all OECD countries, lowering inequality.

Cash transfers account for the bulk of this redistribution. But the equalising effect of taxes and transfers varies widely across the OECD.

Size of transfers matter, but countries also differ in targeting to low-income households.

Redistribution has declined for almost all available OECD countries since the mid-1990s. This decline was largely driven by transfers, in particular insurance transfers.

While reforms to personal income taxes have had a much smaller impact.

More generally, tax and transfer reforms should be forward-looking, taking into account the rapidly changing context in which policy operates, not least technological developments, changes in the nature of work as well as ageing populations and the associated pressures on government budgets.

Social protection systems should adapt to the emergence of non-standard forms of work. Technological change, among other factors, has led to an increase in non-standard form of work and reduced the coverage of traditional social protection systems that are often based on the model of full-time permanent work for a single employer.

Tax policy also needs to reflect rising top incomes and private wealth among ageing populations along with ongoing progress in international cooperation on taxation. Broadening tax bases and improving compliance might be a way to increase the tax collected from this group by limiting the scope for avoidance.

Sign-up to our Newsletter

Register here for the OECD Economy Newsletter to receive the latest information by email regarding future releases of the Outlook and related products.
Follow us on twitter @oecdeconomy 

21点点数一样怎么算 航宇汇金 快乐10分开奖直播 甘肃快3三开奖结果 浙江11选5奖金多少 辽宁35选7综合版 老快3预测 福彩七乐彩怎么玩 黑龙江36选7 吉林11选前三走势图 甘肃11选5电视走势图 22选5开奖结果黑龙江 股票配资平台排名 广西快乐十分 现金网 重庆快乐十分客服 3D试机号分析 香港六合彩管家婆