AT the closing ceremony of the 4th global
conference of the International Tax Dialogue (ITD), Dy Secretary General
of the OECD Rintaro Tamaki said, “As
I travel around the world, a question that I get repeatedly asked is how
can we deal with inequalities? What will be the impact of the crisis? How
do we reconcile the fact that the behavior of banks was one of the major
causes of crisis yet despite public bailouts, we see them continue to pay
millions of dollars in bonuses? How can we show our citizens that the gains
and the benefits of globalization are being fairly shared?”
“Politicians need to have good answers to these questions, and they need to have
answers quickly, otherwise we risk a back lash against globalization as countries
move back towards protectionism,” Mr. Tamaki said. He added: “This conference
has shown that smart tax policy can reconcile the need to promote sustainable
growth with the need to reduce excessive inequalities, particularly at the top
end of the income scale.”
During a comprehensive two and a half day programme, conference participants
addressed the tax issues raised by economic developments and globalisation
that have affected the distribution of income, wealth, and living standards
within and between countries over recent years. Income inequality between countries
has diminished significantly as economic reform in many emerging economies
has spurred growth, significantly reducing levels of absolute poverty globally.
However, recent decades have also seen significant changes in the distribution
of both wealth and incomes within countries, with notable increases in the
share of income enjoyed by those at the very top of the income distribution
in many countries. A rising tide has not lifted all boats.
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