Article on inequality in Cyprus and the US — Cyprus Mail
The Cypriot outlet Cyprus Mail published an article on economic inequality in Western countries, particularly Cyprus and the United States. The author argues that the concentration of wealth among a narrow group of the population and the lag of a significant share of people's incomes behind the cost of living weaken public well-being.
Assessments concerning the US
According to estimates cited in the article, the wealthiest 1% of the US population own nearly one-third of all the country's wealth — an amount comparable to the combined wealth of the bottom 90% of Americans. The author describes the US economy as K-shaped: asset owners and high-income earners are increasing their wealth, while many workers live paycheck to paycheck and carry debt.
The author also writes that Elon Musk's companies have received at least $38 billion over the past 20 years in government contracts, loans, subsidies and tax breaks. The article criticizes the weakening of antitrust enforcement and also mentions that in 2025 the US president halted the enforcement of an anti-corruption law that allowed Americans to be prosecuted for bribing foreign officials.
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Inequality in Cyprus
Regarding Cyprus, the author cites an estimate according to which, between 2007 and 2023, the share of national wealth owned by the wealthiest 10% of households rose by 13 percentage points to 67%. The wealthiest 1% of Cypriot households, according to this estimate, owned 33.7% of national wealth in 2023.
The author links inequality to crony capitalism, tax policy and the high concentration of the banking sector. The article notes that the central government's progressive property tax was abolished on January 1, 2017. According to the author, the 2025 reform raised the tax-free threshold by 12.8% and retained the top personal income tax rate at 35% for incomes above €72,000.
Proposed changes
Among the proposed steps, the author names monitoring compliance with the minimum wage and working conditions, detailed public tax audits of large corporations and politicians holding multiple positions, as well as strengthened oversight of the financial sector. He also proposes introducing a tax on the excess profits of banks and energy companies, restoring a regular progressive property tax, and redirecting Cyprus's economy from construction, mass tourism and retail toward innovative industries with higher added value.
