Tax systems and gender

Abstract

This chapter considers the relationship between gender equity and tax and transfer systems. It first explores why it is important to consider gender equity in taxation: tax policy can be an effective tool contributing to gender fairness and governments’ efforts to reduce gender inequalities. Secondly, the chapter examines the direct and indirect impacts tax policy choices may have on gender outcomes, finding that even gender-neutral tax systems can have adverse impacts on gender through their interactions with broader inequalities in societies. The chapter also analyses the impacts labour incentives may have on gender outcomes, showing that the design of income taxes can influence the incentives for workers to enter the labour market as well as the nature of their participation. Finally, the chapter discusses the case for governments assessing the impacts of tax policy and administration on gender outcomes.