Social Inclusion and Sustainable Development

Despite Iceland's high Gini coefficient, there have still been recent problems of social inclusion. Recently, a new tax policy changed the income threshold, lowering the income level at which people are exempt from paying income tax. Not only has the income tax level changed, but after the 2008 economic collapse, there were significant cuts in pensions and other public expenditures. "In Iceland, the richest 1% of taxpayers own nearly a quarter of all assets, while the richest 10% own nearly three-quarters of all assets. In contrast, 30% of taxpayers owe more than they own" (SGI). This social inclusion problem could either have a positive or a negative effect on sustainability depending on the allocation of the taxes. If the taxes go towards sustainable infrastructure and other sustainable practices, the country has the potential to improve as a whole, but if they do not, this leaves low income families with less of a  chance to contribute to sustainability because of the strain paying taxes puts on their income.

http://www.sgi-network.org/2015/Iceland/Social_Policies