Income inequality has become a major topic of political discourse all over the world, particularly since the COVID-19 pandemic began. Many governments adopted aggressive stimulus programs to put money into the hands of consumers. The United States Government established the Paycheck Protection Program to give small businesses funds to meet payroll and benefits costs, and adopted the Coronavirus Aid, Relief, and Economic Security, or CARES, Act. The CARES Act was followed by the more ambitious American Rescue Plan Act of 2021.
The pandemic has also renewed debate about universal basic income, under which citizens of a given population get a guaranteed income without a means test. It’s politically polarizing: supporters argue it’s the best way to address income inequality and guarantee everybody a minimum standard of living; opponents rail against big government and raise the issue of moral hazard – people will choose not to work if they don’t have to. (These are the countries with the largest gap between rich and poor.)
In truth, however, governments everywhere redistribute income one way or another, and they typically use tax policy to do so. 24/7 Wall St. has identified the 50 countries using taxes to redistribute the most income, based on data from the World Inequality Database’s 2022 World Inequality Report.
Click here to see countries using taxes to most effectively redistribute income
Our list demonstrates clearly that countries at all levels of economic development and governments of all political stripes redistribute income. The No. 1 spot is claimed by South Africa, where successive governments have sought to address the legacy of Apartheid, reduce poverty, and lessen social tension. At No. 2 is Denmark, a rich and famously liberal country, with a high degree of social cohesion. (These are the countries where people have the highest average net incomes.)
Close behind are countries as varied as Georgia, a former Soviet republic, and Cuba, which still has a Communist government. At No. 18 is Yemen, one of the world’s poorest countries. One place behind Yemen is the United States.
50. Guyana
> Decrease in gap, pre- to post-tax income: 32.37%
> Pre-tax income gap, top 10% / bottom 50%: 19.25 — #43 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 13.02 — #73 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 60.36 — #73 lowest of 150 countries
> Average income: $9,114 — #57 lowest of 150 countries
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49. Portugal
> Decrease in gap, pre- to post-tax income: 32.51%
> Pre-tax income gap, top 10% / bottom 50%: 8.79 — #25 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 5.93 — #27 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 85.93 — #41 highest of 150 countries
> Average income: $25,136 — #41 highest of 150 countries
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48. Norway
> Decrease in gap, pre- to post-tax income: 32.70%
> Pre-tax income gap, top 10% / bottom 50%: 5.96 — #4 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.01 — #6 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 72.51 — #46 highest of 150 countries
> Average income: $55,269 — #5 highest of 150 countries
47. Mongolia
> Decrease in gap, pre- to post-tax income: 33.08%
> Pre-tax income gap, top 10% / bottom 50%: 14.84 — #72 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 9.93 — #59 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 48.81 — #30 lowest of 150 countries
> Average income: $12,843 — #70 lowest of 150 countries
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46. Cote d’Ivoire
> Decrease in gap, pre- to post-tax income: 34.01%
> Pre-tax income gap, top 10% / bottom 50%: 23.60 — #23 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 15.57 — #46 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 61.51 — #63 highest of 150 countries
> Average income: $6,028 — #40 lowest of 150 countries
45. Costa Rica
> Decrease in gap, pre- to post-tax income: 34.11%
> Pre-tax income gap, top 10% / bottom 50%: 23.37 — #24 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 15.40 — #48 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 110.28 — #31 highest of 150 countries
> Average income: $17,933 — #60 highest of 150 countries
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44. Kazakhstan
> Decrease in gap, pre- to post-tax income: 34.26%
> Pre-tax income gap, top 10% / bottom 50%: 13.00 — #54 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 8.54 — #50 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 53.95 — #59 lowest of 150 countries
> Average income: $23,396 — #45 highest of 150 countries
43. Brazil
> Decrease in gap, pre- to post-tax income: 34.43%
> Pre-tax income gap, top 10% / bottom 50%: 29.07 — #12 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 19.06 — #16 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: -1108.47 — #12 highest of 150 countries
> Average income: $13,931 — #70 highest of 150 countries
42. Bosnia and Herzegovina
> Decrease in gap, pre- to post-tax income: 35.37%
> Pre-tax income gap, top 10% / bottom 50%: 9.32 — #28 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 6.02 — #28 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 44.23 — #8 lowest of 150 countries
> Average income: $11,840 — #68 lowest of 150 countries
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41. Netherlands
> Decrease in gap, pre- to post-tax income: 35.50%
> Pre-tax income gap, top 10% / bottom 50%: 6.54 — # of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.22 — #8 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 26.77 — #3 lowest of 150 countries
> Average income: $46,187 — #11 highest of 150 countries
40. Spain
> Decrease in gap, pre- to post-tax income: 35.78%
> Pre-tax income gap, top 10% / bottom 50%: 8.16 — #20 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 5.24 — #20 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 13.35 — #1 lowest of 150 countries
> Average income: $31,118 — #28 highest of 150 countries
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39. Kyrgyzstan
> Decrease in gap, pre- to post-tax income: 35.81%
> Pre-tax income gap, top 10% / bottom 50%: 13.12 — #56 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 8.42 — #49 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 47.18 — #20 lowest of 150 countries
> Average income: $4,001 — #24 lowest of 150 countries
38. Seychelles
> Decrease in gap, pre- to post-tax income: 35.88%
> Pre-tax income gap, top 10% / bottom 50%: 21.47 — #32 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 13.77 — #61 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 113.24 — #29 highest of 150 countries
> Average income: $26,730 — #39 highest of 150 countries
37. Colombia
> Decrease in gap, pre- to post-tax income: 37.42%
> Pre-tax income gap, top 10% / bottom 50%: 24.21 — #20 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 15.15 — #51 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 69.20 — #49 highest of 150 countries
> Average income: $13,417 — #75 highest of 150 countries
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36. Chile
> Decrease in gap, pre- to post-tax income: 38.18%
> Pre-tax income gap, top 10% / bottom 50%: 28.94 — #13 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 17.89 — #25 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: -705.53 — #9 highest of 150 countries
> Average income: $22,256 — #47 highest of 150 countries
35. Syrian Arab Republic
> Decrease in gap, pre- to post-tax income: 38.22%
> Pre-tax income gap, top 10% / bottom 50%: 26.55 — #17 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 16.40 — #37 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 64.58 — #55 highest of 150 countries
> Average income: $5,107 — #32 lowest of 150 countries
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34. Botswana
> Decrease in gap, pre- to post-tax income: 38.48%
> Pre-tax income gap, top 10% / bottom 50%: 36.49 — #7 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 22.45 — #10 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: -1060.41 — #11 highest of 150 countries
> Average income: $17,575 — #61 highest of 150 countries
33. Romania
> Decrease in gap, pre- to post-tax income: 39.65%
> Pre-tax income gap, top 10% / bottom 50%: 13.67 — #62 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 8.25 — #47 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 47.74 — #22 lowest of 150 countries
> Average income: $20,982 — #52 highest of 150 countries
32. Italy
> Decrease in gap, pre- to post-tax income: 40.37%
> Pre-tax income gap, top 10% / bottom 50%: 7.78 — #16 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.64 — #15 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 23.93 — #2 lowest of 150 countries
> Average income: $30,003 — #29 highest of 150 countries
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31. Iceland
> Decrease in gap, pre- to post-tax income: 40.75%
> Pre-tax income gap, top 10% / bottom 50%: 5.82 — #3 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 3.45 — #3 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 45.02 — #11 lowest of 150 countries
> Average income: $51,124 — #8 highest of 150 countries
30. Turkey
> Decrease in gap, pre- to post-tax income: 40.88%
> Pre-tax income gap, top 10% / bottom 50%: 22.78 — #26 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 13.47 — #67 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 91.92 — #38 highest of 150 countries
> Average income: $25,788 — #40 highest of 150 countries
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29. Zimbabwe
> Decrease in gap, pre- to post-tax income: 41.64%
> Pre-tax income gap, top 10% / bottom 50%: 31.92 — #9 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 18.63 — #18 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 155.95 — #26 highest of 150 countries
> Average income: $4,383 — #26 lowest of 150 countries
28. Austria
> Decrease in gap, pre- to post-tax income: 41.78%
> Pre-tax income gap, top 10% / bottom 50%: 7.68 — #13 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.47 — #12 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 99.50 — #35 highest of 150 countries
> Average income: $41,746 — #13 highest of 150 countries
27. France
> Decrease in gap, pre- to post-tax income: 41.90%
> Pre-tax income gap, top 10% / bottom 50%: 7.09 — #9 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.12 — #7 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 60.82 — #70 highest of 150 countries
> Average income: $36,880 — #23 highest of 150 countries
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26. Korea
> Decrease in gap, pre- to post-tax income: 41.98%
> Pre-tax income gap, top 10% / bottom 50%: 14.48 — #70 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 8.40 — #48 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 51.53 — #49 lowest of 150 countries
> Average income: $28,668 — #31 highest of 150 countries
25. Germany
> Decrease in gap, pre- to post-tax income: 42.65%
> Pre-tax income gap, top 10% / bottom 50%: 9.76 — #37 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 5.60 — #23 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 88.88 — #39 highest of 150 countries
> Average income: $39,651 — #19 highest of 150 countries
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24. Finland
> Decrease in gap, pre- to post-tax income: 43.25%
> Pre-tax income gap, top 10% / bottom 50%: 7.90 — #17 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.48 — #13 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 137.40 — #27 highest of 150 countries
> Average income: $37,189 — #22 highest of 150 countries
23. Argentina
> Decrease in gap, pre- to post-tax income: 43.58%
> Pre-tax income gap, top 10% / bottom 50%: 13.18 — #57 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 7.44 — #40 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 50.88 — #48 lowest of 150 countries
> Average income: $18,823 — #57 highest of 150 countries
22. Indonesia
> Decrease in gap, pre- to post-tax income: 43.87%
> Pre-tax income gap, top 10% / bottom 50%: 19.37 — #40 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 10.87 — #63 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 55.13 — #64 lowest of 150 countries
> Average income: $11,334 — #63 lowest of 150 countries
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21. New Zealand
> Decrease in gap, pre- to post-tax income: 44.29%
> Pre-tax income gap, top 10% / bottom 50%: 8.83 — #26 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.92 — #17 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 45.22 — #12 lowest of 150 countries
> Average income: $35,361 — #24 highest of 150 countries
20. United Kingdom
> Decrease in gap, pre- to post-tax income: 44.61%
> Pre-tax income gap, top 10% / bottom 50%: 8.77 — #24 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.86 — #16 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 61.56 — #62 highest of 150 countries
> Average income: $34,522 — #25 highest of 150 countries
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19. USA
> Decrease in gap, pre- to post-tax income: 44.68%
> Pre-tax income gap, top 10% / bottom 50%: 17.08 — #68 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 9.45 — #56 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 240.27 — #20 highest of 150 countries
> Average income: $51,894 — #7 highest of 150 countries
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18. Yemen
> Decrease in gap, pre- to post-tax income: 44.95%
> Pre-tax income gap, top 10% / bottom 50%: 31.96 — #8 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 17.60 — #29 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 67.09 — #52 highest of 150 countries
> Average income: $3,605 — #19 lowest of 150 countries
17. Qatar
> Decrease in gap, pre- to post-tax income: 45.48%
> Pre-tax income gap, top 10% / bottom 50%: 30.24 — #11 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 16.49 — #36 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 188.79 — #25 highest of 150 countries
> Average income: $94,211 — #2 highest of 150 countries
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16. Luxembourg
> Decrease in gap, pre- to post-tax income: 46.32%
> Pre-tax income gap, top 10% / bottom 50%: 8.30 — #21 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.46 — #11 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 68.36 — #50 highest of 150 countries
> Average income: $95,145 — #1 highest of 150 countries
15. Bahrain
> Decrease in gap, pre- to post-tax income: 46.40%
> Pre-tax income gap, top 10% / bottom 50%: 28.28 — #14 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 15.16 — #49 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: 94.07 — #36 highest of 150 countries
> Average income: $41,268 — #15 highest of 150 countries
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14. Croatia
> Decrease in gap, pre- to post-tax income: 46.52%
> Pre-tax income gap, top 10% / bottom 50%: 9.61 — #32 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 5.14 — #19 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 44.10 — #7 lowest of 150 countries
> Average income: $20,725 — #54 highest of 150 countries
13. Papua New Guinea
> Decrease in gap, pre- to post-tax income: 48.11%
> Pre-tax income gap, top 10% / bottom 50%: 18.28 — #59 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 9.49 — #57 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 48.07 — #26 lowest of 150 countries
> Average income: $5,171 — #33 lowest of 150 countries
12. Israel
> Decrease in gap, pre- to post-tax income: 48.17%
> Pre-tax income gap, top 10% / bottom 50%: 18.67 — #58 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 9.68 — #58 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 62.82 — #59 highest of 150 countries
> Average income: $40,963 — #16 highest of 150 countries
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11. Ireland
> Decrease in gap, pre- to post-tax income: 48.89%
> Pre-tax income gap, top 10% / bottom 50%: 8.60 — #23 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.40 — #10 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: -99.06 — #1 highest of 150 countries
> Average income: $41,740 — #14 highest of 150 countries
10. Namibia
> Decrease in gap, pre- to post-tax income: 49.11%
> Pre-tax income gap, top 10% / bottom 50%: 49.03 — #2 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 24.95 — #7 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: -379.15 — #6 highest of 150 countries
> Average income: $13,248 — #75 lowest of 150 countries
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9. Sweden
> Decrease in gap, pre- to post-tax income: 49.68%
> Pre-tax income gap, top 10% / bottom 50%: 6.47 — #6 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 3.26 — #1 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 49.72 — #37 lowest of 150 countries
> Average income: $43,610 — #12 highest of 150 countries
8. Japan
> Decrease in gap, pre- to post-tax income: 49.78%
> Pre-tax income gap, top 10% / bottom 50%: 13.38 — #60 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 6.72 — #33 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 50.22 — #41 lowest of 150 countries
> Average income: $29,855 — #30 highest of 150 countries
7. Belgium
> Decrease in gap, pre- to post-tax income: 50.73%
> Pre-tax income gap, top 10% / bottom 50%: 8.06 — #19 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 3.97 — #5 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 34.98 — #5 lowest of 150 countries
> Average income: $40,146 — #18 highest of 150 countries
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6. Cuba
> Decrease in gap, pre- to post-tax income: 52.03%
> Pre-tax income gap, top 10% / bottom 50%: 11.86 — #46 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 5.69 — #24 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 47.46 — #21 lowest of 150 countries
> Average income: $18,960 — #56 highest of 150 countries
5. Australia
> Decrease in gap, pre- to post-tax income: 52.31%
> Pre-tax income gap, top 10% / bottom 50%: 10.39 — #40 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 4.96 — #18 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 46.22 — #17 lowest of 150 countries
> Average income: $38,930 — #20 highest of 150 countries
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4. Canada
> Decrease in gap, pre- to post-tax income: 52.56%
> Pre-tax income gap, top 10% / bottom 50%: 13.06 — #55 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 6.19 — #29 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 49.54 — #34 lowest of 150 countries
> Average income: $38,907 — #21 highest of 150 countries
3. Georgia
> Decrease in gap, pre- to post-tax income: 55.34%
> Pre-tax income gap, top 10% / bottom 50%: 17.63 — #62 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 7.88 — #44 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 51.78 — #51 lowest of 150 countries
> Average income: $9,243 — #59 lowest of 150 countries
2. Denmark
> Decrease in gap, pre- to post-tax income: 57.02%
> Pre-tax income gap, top 10% / bottom 50%: 7.92 — #18 lowest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 3.40 — #2 lowest of 150 countries
> Wealth gap, top 10% / bottom 50%: 64.61 — #54 highest of 150 countries
> Average income: $46,584 — #10 highest of 150 countries
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1. South Africa
> Decrease in gap, pre- to post-tax income: 60.44%
> Pre-tax income gap, top 10% / bottom 50%: 63.10 — #1 highest of 150 countries
> Post-tax income gap, top 10% / bottom 50%: 24.96 — #6 highest of 150 countries
> Wealth gap, top 10% / bottom 50%: -175.55 — #3 highest of 150 countries
> Average income: $13,205 — #74 lowest of 150 countries
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