Is the tax burden fairly distributed by developed nations? – a comparative study

Abstract

Background: Globalisation and fast growth in some developing economies significantly reduced the income gap between countries. However, globalisation has not necessarily resulted in equal distribution of benefits inside these countries. Objective: The objective of this research was to verify whether there is a pattern in tax burden distribution policies in highly developed nations. Method: The article adopted the literature review and a comparative data study as research methods and was structured in five chapters that complement each other within a logical sequence. Results: The research showed that despite the development process presupposing sustainability and social inclusion, the developed nations do not equitably distribute the tax burden. The findings also demonstrated that there is no pattern in the tax policies. Conclusions: The comparative analysis indicated that jurisdictions are exempting corporate income taxation to become more competitive in a global economy setting and are overtaxing individual income tax and employee taxation to compensate for the low tax on corporate income. Contributions: The research results contribute to a growing body of literature that explores the relationship between the development of nations and levels of inequality and addresses the role of tax policies in this interrelationship. The research also presents practical contribution, being able to guide the formulation of tax policies that seek tax justice and aim at global tax governance.