Such a move would help to reverse widening inequality between the wealthiest and the richest, the OECD said. In order to boost tax revenue, governments should also “offer incentives to increase the formalization (process) for workers,” said Angel Melguizo, head of the Latin America and the Caribbean Unit of the OECD’s Development Centre. OECD representatives will meet local officials to hold a series of meetings and to advance tax reform proposals. ‘Tolerance for tax evasion’Melguizo said only 22 percent of Latin American and Caribbean residents pay individual income tax (versus an average of 36 percent in OECD countries), while the richest 10 percent contribute only six percent of their income. “In Argentina, this tax income represents just three percent of Gross Domestic Product, while in the OECD it is up to nine percent,” said Melguizo as he presented a detailed report on the tax burden in regional wages.

Source: Bueno Aires Herald September 27, 2016 03:00 UTC