ADB’s solution to reduce economic inequality: Tax income and property of rich

By: | Updated: May 4, 2018 1:13 PM

In order to plug the gap between rich and poor in the world, Asian Development Bank (ADB) has called for progressive taxation that includes taxing the income, inheritance and property of the rich people.

adb, Asian Development Bank, Asian Development Bank project, Asian Development Bank job project, Asian Development Bank loan, bank loan, adb loan, adb project, himachal pradesh, himachalProgressive taxation and efficient government policies, including universal healthcare are important to protect poor people, ADB said. (Reuters)

In order to plug the gap between rich and poor in the world, Asian Development Bank (ADB) has called for progressive taxation that includes taxing the income, inheritance and property of the rich people. The world especially emerging nations need to shield workers from losses of job in wake of introduction of new technologie such as artificial intelligence and robotics, ADB President Takehiko Nakao said at a global briefing of reporters on Thursday.  Progressive taxation and efficient government policies, including universal healthcare are important to protect poor people, he added.

“We need policies to support people who are behind the technological development and some people may lose jobs as they are not trained. We need to support people income, not the basic income, but to provide the minimum protection of life to the people. Also, we need (to provide) universal healthcare to those people and education for kids of those people,” Nakao said at a press conference on the eve of the 51st annual meeting of the ADB.

ADB in its ‘Asian Development Outlook 2018’ released last month, had said that workers need to upskill or face the risk of lower wages and even unemployment considering rate at which new technologies are replacing manual jobs in different parts of the world. ADB chief also called for the policymakers to draft such policies which help in providing adequate training and education and skills to poor people. He cited example of China that needs more sturdy individual taxation system to cover more people.  ADB is in process to formulate a long-term ‘strategy 2030’ to deal with climate change and gender issues as well as the impact of technology on jobs, he said.

“Systemic gender gaps in productivity, wages, and income poverty persist, particularly in households headed by women. Growing inequality could undermine social cohesion, endanger social and political stability, and hamper the region’s economic prospects,” ADB said.

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