| TAX Policy, as an instrument for reducing income inequality, is considered by global experts as number one or number two solution in five of the six regions of the world, according to a report released by World Economic Forum (WEF).
The Report captioned 'Outlook on the Global Agenda 2015' has identified 'Deepening income inequality' as the first among the top 10 trends. This global issue is followed by 'Persistent jobless growth'.
What are the top solutions to income inequality? This question elicited 'tax policy' as the number answer from experts in North America and Europe. Improved Education, on the other hand, figured as number one solution for Asia and Latin America with tax policy slotted as number two remedy. Job Creation was listed as the top solution for Middle East & North Africa and Sub-Saharan Africa.
The report has quoted Frederick Kempe, President and Chief Executive Officer of The Atlantic Council, and a Member of the Global Agenda Council on the United States as supporting the use of tax policy as a means for funding education and training for the under-privileged.
As put by Mr. Kempe: "If we use tax income to take on under-education and inadequate training, we can succeed. However if the goal is simply to punish the fabulously wealthy, greater taxation could kill the goose that's laid the golden egg."
The report features an analysis of the Top 10 trends which will preoccupy our experts for the next 12-18 months as well as the key challenges facing the world's regions, an overview of global leadership and governance, and the emerging issues that will define our future.
As put by Martina Larkin Senior Director, Head of Global Knowledge Networks, WEF, "topping the list of concerns are economic woes, especially the rise of income inequality, which has made it to the number one trend after it first emerged as the most underestimated issue in our 2011 edition, as well as the risk of a persistent jobless growth."
She says: "These two socio-economic trends are creating a dangerous cycle: Stagnant wages and the lack of employment are contributing to rising inequality, as well as holding back consumer spending and therefore growth in advanced economies."
According to Klaus Schwab WEF Founder & Executive Chairman, The Report reflects the thought leadership of the world's foremost intelligence network – a community of over 1,500 global experts.
The Report offers a comprehensive overview of the world today, as well as an analysis of how these experts expect it to develop in the coming 12-18 months. It also outlines the nature of global trends, regional challenges, global leadership and governance, as well as the emerging issues that should be on the agendas of global leaders.
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