The top 10 percent of Slovakia’s richest earned almost six times as much as the poorest 10 percent, the daily Pravda reported, citing data from the Organisation for Economic Co-operation and Development (OECD). At the same time it should be noted that the disparities in Slovakia still tend to be smaller than in most other developed countries.
Slovakia was placed 26th out of 34 states in terms of financial inequality in the OECD's list. The worst case was Mexico, where the richest 10 percent earn almost 29 times as much as the poorest 10 percent. The average among the 34 countries was a nine-fold difference. "The long-term redistribution policy of the state in the form of support for the unemployed, subsistence benefits and other measures is one of the main reasons why there is a moderately low level of inequality in Slovakia”, said Martin Kahanec, an economist with the Central European Institute for Labour Research.
The daily Pravda added that the gap between richer and poorer deepens in Slovakia even after the current leftist Government introduced a higher 25-percent rate for high-earners last year. At the same time it increased corporate taxes from 19 percent to 22 percent. Two measures that would help most to reduce the gap between rich and poor in Slovakia are a further reduction in tax evasion and a cut in the unemployment rate, states the daily.
