October 14, 2014
Despite seemingly high levels of government spending, the U.S. safety net is much less efficient than other countries’ at raising poor people out of poverty. U.S. taxation and transfer policy does less to reduce inequality than any other OECD country apart from South Korea, Switzerland and Chile. The U.S. is the tenth most unequal country in terms of income in the OECD before taxes and transfers are taken into account. After taxes and transfers, the U.S. rises to fourth most unequal, behind only Turkey, Chile and Mexico.