Wealth inequality is higher in the U.S. than most other developed countries. Simply put, the rich just keep getting richer. Over the past 40 years, the wealthiest 1% of Americans saw the fastest income growth. The top 0.01% of households saw income growth nearly 27 times faster than the income of the bottom 20% of earners. The wealth gap in the U.S. is widening due to wage stagnation, rising costs of living and the decline of unions, among other factors.
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In the U.S. News & World Report ranking of income equality in 89 countries, the U.S. came in at No. 24. The below five countries came in on top. Let’s look at the average salary, cost of living and personal income tax rates in the countries with the highest levels of income equality.
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5. Finland
Average salary: €48,384 ($56,825)
Cost of living: 0.8% lower than in the U.S.
Personal income tax rate: Between 12.64% and 44.25%
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4. Switzerland
Average salary: CHF 79,980 ($100,878)
Cost of living: 65% higher than in the U.S.
Personal income tax rate: 40%
3. Norway
Average salary: 640,000 NOK ($63,518)
Cost of living: 20.8% higher than in the U.S.
Personal income tax rate: 22%
2. Sweden
Average salary: SEK 506,967 ($53,289)
Cost of living: 4.4% lower than in the U.S.
Personal income tax rate: 52%
1. Denmark
Average salary: DKK 395,500 ($62,244)
Cost of living: 13.2% higher than in the U.S.
Personal income tax rate: 55.90%
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This article originally appeared on GOBankingRates.com: 5 Countries With the Most Wealth Equality
