Inequality between rich and poor is almost impossible to pinpoint
Not only is the data ‘squishy’, new research shows tax avoidance, a decline in innovation, pricing power, and inflation and wages all play their part
New York/Washington— Pinpointing the inequality between rich and poor is notoriously difficult because the data is so squishy, and new research shows just how hard the job can be. The study is the first of its kind to quantify tax avoidance by nation. It kicks off this week’s economic research round-up and is followed by a look at the decline in innovative ideas, another on the trajectory for pricing power, and a final piece on inflation and wages in the US and Europe. Who’s skipping out on taxes? One-tenth of the world’s total wealth is held in offshore tax havens, but that share jumps to as much of 15% for Europe and as much as 60% for Gulf and some Latin American countries, new research shows. When it comes to total offshore wealth as a share of GDP, the United Arab Emirates, Venezuela, Saudi Arabia, Russia and Argentina lead the pack, while Germany, the UK and France all have above-average holdings. The US is slightly below average. There are a few factors that are closely assoc...
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