Czech Republic Underestimates Wealth Gap, Calls for More Equality in Perceptions and Income Distribution

Two studies on wealth and income inequality perceptions in the Czech Republic reveal that the public underestimates the existing wealth gap but desires a more equitable distribution of wealth, according to findings from the Research Institute of Labour and Social Affairs (RILSA).

The research, involving 1,080 participants and deemed representative, showed that respondents perceived the top 20% of the population owning less than half of the country’s wealth, while the poorest fifth was estimated to have about 5%. In reality, the top 20% holds 80% of the wealth, and the poorest fifth only possesses 0.2%. This suggests a significant underestimation of wealth inequality, a trend observed in other countries as well.

The ideal wealth distribution, as perceived by respondents, would allocate one-third of the wealth to the richest fifth and over 10% to the poorest fifth, with the majority held by the middle class. The current distribution deviates significantly from these ideals, reinforcing the call for increased equality.

Regarding income, respondents inaccurately estimated the monthly gross income of ministers and bank board members, proposing lower figures for both. The ideal income level for ministers, according to respondents, would be 41% of the current amount, and for bank managers, it would be 11.5%.

The studies indicate that supporters of various political parties, regardless of coalition or opposition, share similar views on wealth distribution ideals. However, supporters of ANO and Freedom and Direct Democracy (SPD), led by one of the country’s wealthiest individuals, Andrej Babis, expressed a stronger preference for equality.

A second study on income distribution revealed that participants who were informed about the actual income of ministers and managers demonstrated higher distrust of elites and emphasized the need to reduce inequality. The authors of the studies critique the current tax system, arguing that it exacerbates inequality, with high taxation on labor and indirect taxes, coupled with low taxation on property and capital income. These findings shed light on public perceptions, highlighting a call for more transparency and measures to address wealth and income inequality in the Czech Republic.

Article by Prague Forum

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