Since independence, Georgia has experimented with neoliberal economic reforms. One of them is the current flat income tax system. While positive economic outcomes are unclear, it continues to widen the gap between rich and poor. At the same time, unemployment and poverty rates have remained high in Georgia.
Sarah Godar, Tato Khundadze and Achim Truger address these challenges in their latest publication “Striving for Shared Prosperity”. The title of their study is programmatic: the authors propose a progressive income tax reform with increased public expenditures on human capital and industrial development which could mitigate the high level of income inequality and improve the life conditions of lower income groups.
Georgia Office N. Ramishvili str. I Dead End, Bldg. 1, Ap. 7 0179, Tbilisi Georgia+995 32 225 07 28georgia(at)fes.de
Armenia Office Moskovyan str. 31, 76/1 0002, Yerevan Armenia+374 10 53 69 13+374 10 53 26 97armenia(at)fes.de
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