“As the above table shows, Belgium saw the steepest decline in income inequality, dropping by nearly half after-tax. The country’s progressive tax rate system—where taxes increase as a person’s income increases—is one factor behind this decline…Nordic countries like Finland, Slovenia, and Austria, all saw notable decreases.
“Income inequality also falls significantly in Ireland, where many big tech giants are incorporated due to its favorable tax policies. In fact, foreign-owned firms, including Apple and Microsoft, make up the majority of its corporate taxes. However in 2024, the country is implementing a 15% corporate tax rate as part of a new global minimum standard.
“Interestingly, in the U.S., income inequality after tax drops by almost 28%, but before-tax inequality is high. In 2019, people in the highest income quintile earned on average 14 times more than the average household. A report from the Congressional Budget Office states that transfers and taxes increased the lowest quintile household incomes by $15,100 on average.”