Understanding the concept of disparity: A detailed look at unequal distribution of resources or opportunities among individuals or groups
In the pursuit of a more equitable society, experts and policymakers are proposing a range of solutions to reduce economic and gender inequality within the EU and globally. The focus is on tax reforms, social welfare measures, and inclusive economic policies.
Ambitious Corporate Tax Reforms
To combat large-scale tax avoidance by multinational corporations, ambitious corporate tax reforms are being proposed at both the EU and global levels. The European Commission is considering introducing lump sum payments from large multinationals, but experts suggest a more comprehensive tax reform and active engagement in global tax negotiations, such as a UN Convention on Tax, are needed to fairly boost corporate tax rates and curb avoidance [1].
Environmental Taxation
Environmental taxation is another proposed measure, aimed at taxing polluting industries—especially fossil fuel companies—to finance climate action and support vulnerable populations. There is advocacy to reinstate and scale the EU’s "solidarity contribution," a special tax on fossil fuel profits that previously raised substantial funds but was discontinued, missing a key opportunity to align equity with environmental goals both in Europe and developing countries [1].
Wealth Taxes and Universal Basic Income (UBI)
Social policy experts propose wealth taxes and universal basic income (UBI) as fundamental policies to directly reduce inequality. Wealth taxes target accumulated capital among the richest, while UBI provides unconditional cash payments to all citizens to enhance economic security and reduce poverty rates [3].
Addressing Wealth Inequality
Holistic and creative economic policies are being proposed to address the rising wealth inequality, where the richest 10% own around 67% of EU wealth. This includes revisiting tax systems, social transfers, and labor market policies to help lower and middle classes [2][4].
Improving Redistributive Efficiency
Governments face challenges from global tax avoidance and capital flight to offshore havens. Strengthening tax enforcement and closing loopholes are critical to enabling social transfers and welfare spending that narrow income and wealth gaps [4].
Decreasing Household Debt
Recent data shows slight reductions in household debt-to-income ratios, which is a positive trend for reducing household vulnerability and economic inequality in the EU [5].
These solutions represent a combination of fiscal policy reforms targeting wealthy individuals and corporations, social welfare innovations like UBI, environmental taxes linked to climate justice, and stronger international cooperation on tax matters—all aimed at addressing the multifaceted nature of economic and gender inequalities within the EU and globally [1][2][3][4][5].
Inequality, a defining theme of the left-right political spectrum, has moved up the political agenda due to the global transition to a neoliberal economic regime in the 1980s. The health of populations has been demonstrated to depend on having compressed social hierarchies, and a raft of social pathologies, such as violent crime, have been shown to be linked to steep social gradients.
The neoliberal era has seen the soaring away of top incomes at the expense of those in the lower reaches of the income hierarchy. The financial crash of 2008 has thrown the neoliberal era into question, as it was not anticipated by neoclassical economists.
Gender inequality is a current issue, and many experts are proposing solutions to counteract it. For instance, Lilja Dögg Alfreðsdóttir proposes taxing the super-rich as a tool to close the gender gap. Lina Gálvez Muñoz discusses countering the backlash on gender equality, while Frances Fitzgerald advocates for towards gender-parity democracy. Magdalena Sepúlveda Carmona emphasizes the need for the EU to take violence against women seriously.
In the city-Cape Town, tackling inequality is a pressing concern. Tackling inequality in Europe and why it is falling is discussed by Wouter Zwysen, while Pay gaps between firms driving wage inequality is a topic discussed by Pay gaps between firms driving wage inequality. The imperative of a gender-sensitive recovery is discussed by Juliane Bir and Aline Brüser, and Not done yet-applying the minimum-wages directive is a topic discussed by Torsten Müller and Thorsten Schulten.
Childcare is identified as a catalyst for gender equality, specifically referring to Portugal's bold step, as discussed by Christian Morabito. The 'union of equality' requires leadership, according to Agnès Hubert, and Laeticia Thissen and Zita Gurmai discuss Sofagate, implying that women deserve a seat in important decision-making.
Niels Planel advocates for quality education for all as a solution, and Global tax evasion: the good and the bad news is discussed by Jayati Ghosh. Alex Cobham discusses developing tax rules for a globalized world, and Carlos Vacas-Soriano questions how many inequalities the world can fight at the same time.
Lastly, Gabriel Zucman suggests that taxing the super-rich is more possible than ever. The transition has returned to an earlier, 'classical' presumption that markets arrive at optimal economic equilibria.
- To address the rising wealth inequality within the EU and globally, experts are proposing revising tax systems, social transfers, and labor market policies to benefit the lower and middle classes.
- Social policy experts suggest implementing wealth taxes and universal basic income (UBI) as fundamental policies to reduce economic inequality, with wealth taxes targeting the accumulated capital among the richest and UBI providing unconditional cash payments to all citizens.
- In the discourse of gender equality, many experts propose taxing the super-rich as a tool to close the gender gap, while emphasizing the need for the EU to address violence against women more seriously.
- To combat large-scale tax avoidance by multinational corporations, policymakers are considering introducing lump sum payments and advocating for stronger international cooperation on tax matters, such as a UN Convention on Tax, to boost corporate tax rates and curb avoidance.
