Taxation Policies and Economic Inequality: Strategies for a More Equitable Society

Abstract

Taxation policies play a crucial role in shaping the economic landscape of a nation. They are powerful tools that can either exacerbate or alleviate economic inequality. In recent years, the issue of economic inequality has gained significant attention globally, prompting governments to reconsider and reform their taxation strategies. This chapter delves into the intricate interplay between taxation policies and economic inequality, examining how fiscal strategies can either exacerbate or alleviate societal disparities. Against the backdrop of a global discourse on wealth gaps, the chapter explores various strategies aimed at fostering a more equitable society. The discussion encompasses the principles of progressive taxation, emphasizing the importance of taxing higher incomes at elevated rates to facilitate wealth redistribution. Moreover, it underscores the significance of social safety nets, education, and skill development in complementing taxation policies to address economic inequality comprehensively. Corporate taxation, fair labour practices, and the imperative of international cooperation feature prominently as integral components of the proposed strategies. As a call to action, the chapter emphasizes public awareness and participation, positing that transparent communication and citizen engagement are pivotal in shaping taxation policies that align with societal values. This comprehensive exploration seeks to contribute to the ongoing dialogue on creating a fairer and more inclusive global economic landscape.