Report
Are there ways other than taxation to reduce inequality?
Many economists and politicians want to reduce inequality, but often they propose to do this through tax policy. Are there ways to reduce inequality other than by hiking tax (on income, capital, wealth, etc.)? We know that income inequality (before redistribution ) is highly correlated with the employment rate. All policies (training, education, etc.) that improve skills increase the employment rate and therefore reduce income inequality; With regard to wealth inequality, options to reduce it without increasing tax on capital, capital income or inheritance include: A less accommodative monetary policy, which would curb asset prices; More active competition policies that reduce rent -seeking by companies in dominant positions; Widespread distribution of shares (securities representing the capital of companies) to employees.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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