Contrary to popular belief, recent cuts to the budget made by the government and other economic factors have actually been lightest on those with the lowest income, and more significant on those with a high income.
The Social Research Centre of the University of Iceland released figures that outline this data, RÚV reports. According to their findings, the income of the lowest income families has been reduced by about 6.6%. At the same time, high income households have seen their incomes drop by 28.2%. Middle income households have, on average, seen their incomes reduced by about 8%.
The reasons for this, it is explained, is due to the fact that low income families have been taxed less while the lowest wage has been raised. At the same time, higher taxes and a stagnation – or in some cases, a reduction – of income in higher income households has cut their purchasing power significantly. The data as a whole was drawn from last year’s figures and next year’s projections.
This of course does not mean that lower income families are not struggling right now; only that when all income strata are taken into account, higher income earners have had their revenue reduced far more than those at the lowest income bracket.