“Wealthy Taxpayers Seem to Be Getting Wealthier” says OECD
The December, 2006 OECD Economic Outlook (full text unavailable on line) points to sudden tax revenue windfalls in most member countries due to large capital gains and the fact that “the process of income and wealth distributions becoming more skewed has picked up pace lately …. and may be interacting with progressive tax systems to produce more than usual increases in revenue.”Â (p.27)
This provides support for my earlier post on the supposed “puzzle” ofÂ personal income tax revenue growth exceeding pesonal income growth in Canada.
Predictably, the OECD calls for these windfalls to be used to reduce debt rather than to improve income redistribution programs or public and social services.