The impact of the wealth taxes on income inequality and poverty in OECD countries

Abstract

Paper aims to assess if wealth and other taxes have an influence on income inequality and poverty in OECD countries. The theoretical aspects of taxes and their functions, the concept of wealth taxes and their effect on income inequality or poverty are analysed. The obtained results show that OECD countries have a different structure of wealth taxes; wealth tax revenue percentage of GDP is different in all OECD countries. Countries which have more revenues from wealth taxes tend to have a lower level of income inequality and poverty. The econometric calculations show that wealth taxes and all other taxes are statistically significant, and they have a positive effect on the society, i.e. they reduce income inequality and poverty.