>Inequality in our country is greater than expected. This is evident from a study by KU Leuven based on new data. This not only examined income from labor, but also assets, such as savings or shares. And then the picture suddenly looks completely different over the last 15 years.
>In terms of income inequality, Belgium was for many years considered the Gallic village of Asterix and Obelix. Our country was an exception to the general international trend. While income inequality was increasing all around us, reports from the OECD, the club of rich countries, showed that this was not the case in Belgium. According to studies, our country had a very low level of inequality , comparable to egalitarian countries such as Finland and Sweden.
>Decoster: “Shift to tax on capital income is inevitable”
>What can federal government negotiators do with this investigation? According to Professor Decoster, the conclusion of the research should not be that we should want an “absolutely equal society”, he says in De Ochtend on Radio 1. “Some inequalities are justified, for example if you take a lot of risk or work very hard. works. But we are concerned about other inequalities, such as unequal starting opportunities or setbacks. Just before that, we have developed a very strong social security system.”
>In his view, the great challenge for politicians is to continue to finance social security, now that the population and the economy are changing.
>”Politicians always talk about personal income tax reform. But I think the real challenge of labor taxes lies in the fact that social security is financed exclusively by labor (and a little from general resources). If you want shift, there is only one other option: a tax on capital income. I would therefore rather look at income from capital than at a wealth tax itself. But I think such a shift is inevitable.”
To the surprise of absolutely no one
All the “but we can’t tax capital gains, we are already one of the most equal countries” people in shambles
Somehow taxing human labor is fine but taxing magical income you get out of thin air is a shocking idea – no wait, that’s even worse, that would be taxing income you get out of *other people*’s labor.
I’m not an anti immigration guy or anything, but if your country has 100 000 net immigration per year the majority of which are poor then growing inequality is inevitable regardless of policy. This isn’t exactly rocket science
Given that we have a fairly decent level of wages, I think the lower income inequality is much more important than wealth inequality. It’s human to always focus on the bad, but income inequality is about how many people struggle to afford just living. Wealth inequality pertains to how succesful people are at accruing wealth, but wealth doesn’t correlate as evenly to how well you can afford just living. From a certain salary level onwards, your quality of life barely improves if your income increases, but your wealth will increase easily. Quality of life is a much more important factor in my opinion. And while we Belgians love to complain about our high taxes, the truth is that we don’t have it all that bad in comparison to other countries. Even those who are not well off, are still better off than they would be in many other places.
7 comments
>Inequality in our country is greater than expected. This is evident from a study by KU Leuven based on new data. This not only examined income from labor, but also assets, such as savings or shares. And then the picture suddenly looks completely different over the last 15 years.
>In terms of income inequality, Belgium was for many years considered the Gallic village of Asterix and Obelix. Our country was an exception to the general international trend. While income inequality was increasing all around us, reports from the OECD, the club of rich countries, showed that this was not the case in Belgium. According to studies, our country had a very low level of inequality , comparable to egalitarian countries such as Finland and Sweden.
>Decoster: “Shift to tax on capital income is inevitable”
>What can federal government negotiators do with this investigation? According to Professor Decoster, the conclusion of the research should not be that we should want an “absolutely equal society”, he says in De Ochtend on Radio 1. “Some inequalities are justified, for example if you take a lot of risk or work very hard. works. But we are concerned about other inequalities, such as unequal starting opportunities or setbacks. Just before that, we have developed a very strong social security system.”
>In his view, the great challenge for politicians is to continue to finance social security, now that the population and the economy are changing.
>”Politicians always talk about personal income tax reform. But I think the real challenge of labor taxes lies in the fact that social security is financed exclusively by labor (and a little from general resources). If you want shift, there is only one other option: a tax on capital income. I would therefore rather look at income from capital than at a wealth tax itself. But I think such a shift is inevitable.”
To the surprise of absolutely no one
All the “but we can’t tax capital gains, we are already one of the most equal countries” people in shambles
Somehow taxing human labor is fine but taxing magical income you get out of thin air is a shocking idea – no wait, that’s even worse, that would be taxing income you get out of *other people*’s labor.
I’m not an anti immigration guy or anything, but if your country has 100 000 net immigration per year the majority of which are poor then growing inequality is inevitable regardless of policy. This isn’t exactly rocket science
You can read the study, instead of the article, here: http://www.andredecoster.be/wp-content/uploads/2024-Capeau-Decoster-De-Rock-and-Vanderkelen-Fiscal-Studies-Did-Belgium-withstand-the-storm-of-rising-inequalities.pdf
Given that we have a fairly decent level of wages, I think the lower income inequality is much more important than wealth inequality. It’s human to always focus on the bad, but income inequality is about how many people struggle to afford just living. Wealth inequality pertains to how succesful people are at accruing wealth, but wealth doesn’t correlate as evenly to how well you can afford just living. From a certain salary level onwards, your quality of life barely improves if your income increases, but your wealth will increase easily. Quality of life is a much more important factor in my opinion. And while we Belgians love to complain about our high taxes, the truth is that we don’t have it all that bad in comparison to other countries. Even those who are not well off, are still better off than they would be in many other places.
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