WB/IMF Tax Conference - Taxation of the Wealthy in Developing Countries 2021 | The World Bank | 19 October 2021 | Virtual

Inequality in the form of extreme concentration of income and wealth has been rising in many countries. Recent evidence has shown that the top 1% share of global income has been between three to four times larger than the share of the bottom 50%. The persistence in income inequality over centuries until today is largely driven by inequality in distribution of wealth. Progressive tax policy is one of the prime tools for addressing such inequality and the optimal policy choices will need to balance the benefits of redistribution with the costs of implementing such policies. Setting tax policy to address inequality faces many challenges, including how to deal with globalization, tax competition, tax avoidance and evasion, and state capture.

This year we will discuss the challenges in better taxation of income and wealth, the experience of governments in developing countries and the practical issues they face in designing as well as implementing tax policies to reduce income and wealth inequality.

Discussion Topics

• How have different countries been using progressive income taxation to address inequality? What are the barriers to increasing progressivity in income taxation?
• How could we improve the taxation of capital incomes? What are the challenges in increasing the taxation of capital incomes?
• How have countries been using wealth taxation to address wealth inequality? What are some of the potential risks and lessons learned?
• What is the role of international tax evasion in exacerbating under taxation of high-net-worth individuals? What are key policy objectives being pursued, and how are they evolving through the pandemic?
• What role can multilateral initiatives play to improve taxation of high-income earners?
• What new tools, research and initiatives are being developed to inform better design and implementation of more equitable tax policies?
• What role can tax administration play in reducing tax evasion by the wealthy?
• How do tax amnesties affect tax policies in addressing inequality?