Côte d'Ivoire citizens pay the highest income tax in the world

In this issue, I focus on the money the government of Côte d'Ivoire is making from taxes and what South Korea is willing to do to become better friends with Japan. Also, a chilling New York Times investigation on the horrible living and working conditions of Central American migrant children in the U.S., an accusation that Senegal's president might have given millions of dollars to France's far-right Marine Le Pen, and some good news from Malaysia, India and Chile. I also recommend an anime composer in protest of the movie Tár and an empowering piece by Zimbabwean author Gappah about the state of African writing, and so much more.

Citizens of Côte d'Ivoire pay the highest income tax in the world

World Population Review published its latest global tax index report last week, andCôte d'Ivoire takes the cake: Its citizens pay 60% income tax.

Why this matters:
Income tax can (!) be used to fund public goods and services for citizens. However, on the current United Nations Human Development Index (which looks at life expectancy, education and per capita income), Côte d'Ivoire is ranked 159th out of the 191 countries assessed, and the BTI ranks the country at 77 (out of 137). Some 29 million people live in Côte d'Ivoire.

Tell me more:
The study surveyed over 150 countries. Apart from Côte d'Ivoire, Finland (56.95%), Japan (55.97%), Denmark (55.90%), and Austria (55%) together make up the top five countries with the highest income tax. "No other African country makes it to the top ten list of highest-taxed countries in 2023---based on the highest personal income tax rates," writes Faustine Ngila for Quartz.

Are all other taxes this high in Côte d'Ivoire?
No, not at all. The country's sales and corporate taxes are considerably lower than those of other countries globally. However, overall, revenues from these taxes are considered to be a key source of income for the Ivorian government.

What other sources of income does the government of the Ivory Coast have?
Many. Côte d'Ivoire is the world's largest cocoa producer (producing 45% of the global production), and its economy has been gradually growing (growth rate of 7% in 2021!). Plus, the country also exports a lot of cashews, coffee, and palm oil. Not to mention the significant offshore oil and natural gas reserves, whose exploration is already boosting its government income. The government even managed to decrease their budget deficit in 2023 (5% of its GDP in 2021, down from 5.6% in 2020). This has a lot to do with all of the above. This is also one of the many reasons why Côte d'Ivoire last year regained its reputation as a "top investment destination in Francophone Africa, and on the continent as a whole." (Quartz)

Which are the top five highest taxed African countries?
After Côte d'Ivoire, the list mentions South Africa (45%), Uganda (40%), Senegal (40%), Zimbabwe (40%) and Guinea (40%).

Conversely, Libya (10%), Seychelles (15%), Mauritius (15%), Sierra Leone (15%) and Sudan (15%) are the African countries with the lowest tax rates.

Totally off-topic, but did you know that the largest church in the world is in Côte d'Ivoire? Constructed between 1985 and 1989, the Basilique Notre-Dame de la Paix (Basilica of Our Lady of Peace), is a Catholic minor basilica in the city of Yamoussoukro. The Basilica in Vatican City inspired the design, as is evident with its Renaissance and Baroque style.

South Korea compensates its own victims of Japanese colonialism

Refresher:
About 150,000 Koreans were forced to work in factories and mines in Japan between 1910 and 1945, due to Japan's colonization of the Korean peninsula in that time period. Many more people have died.

South Korea:
has agreed to pay compensation to its own citizens who were forced to work inJapanese factories back then. (BBC)

Why this matters:
This is a huge controversy. South Korea and Japan have been talking about this part of Japan's colonial history for a very long time now. Officials on both sides are like, 'yay!' Victims say, 'this is not holding Japan accountable. What the?'

Tell me more:
Seoul's plan proposes that South Korean companies who benefited from a 1965 post-war treaty will pay donations. The fund of US$3 million will be distributed among the families of 15 original plaintiffs, only three of whom remain alive.

That's a good thing, no?
Not really. All three have said they will refuse to accept the money. Last Monday, protesters in Seoul held demonstrations outside South Korea's foreign ministry to condemn the plan by their government, which will see South Korean companies pay into a public fund for victims. Japan, in the meantime, is like, 'cool that you have stopped demanding two of our firms to pay compensation.' Japan considers the labor issue settled by the 1965 treaty of normalization. South Korea's main opposition Democratic Party leader Lee Jae-myung called the deal "the biggest humiliation and stain in diplomatic history". A public opinion poll has found that nearly 60% of South Koreans are against the deal...