Do we have the tools for achieving distributive tax justice?

Abstract

Purpose: How can tax policies serve as a tool to promote distributive tax justice? The purpose of this study is to discuss several policies that research shows are both feasible and effective in achieving distributive tax justice. Motivation: By many accounts, income and wealth inequality has grown significantly in many countries in recent years, violating many peoples' standards of “distributive tax justice”. Exploring policies that research has shown are both feasible and effective in achieving distributive tax justice should provide useful guidance to governments. Design/Methodology/Approach: This paper reviews research on policies that have been suggested as options, examining both the feasibility that these policies may be enacted and the effectiveness of these policies if actually implemented. Main findings: This paper suggests policies that would increase the taxes paid by the rich, reduce tax evasion by the rich, and decrease the tax burdens by the gender, race, and ethnicity of taxpayers. Practical implications/Managerial impact: These policies all work through existing taxes, they are all administratively feasible and effective, none of these policies raises statutory marginal tax rates, these policies are all consistent with the standard “Broad Base, Low Rate” approach to tax reform, and variants of all of these policies apply worldwide. Novelty/Contribution: These suggested policies are novel among many other analyses because the policies here all emerge from a framework that emphasises feasibility and effectiveness in achieving distributive tax justice.