On the impact of taxation on inequality problems

Abstract

Importance: growing inequality is one of the most serious problems that all countries face today. Inequality is multifaceted and is caused by multiple factors, such as tax policy, globalization, technological progress and education. Reducing inequality is an extremely important goal of sustainable development for any state. In addition, taxation plays an important role in reducing it. Purpose: to explore the essence of inequality as one of the key elements of uneven income distribution and to reveal the impact of taxation on the problems of inequality. Research design: three directions characterize Inequality: reduction of budget deficit by increasing taxes; liberalization of labor markets and elimination of barriers to capital movement across borders. Identification of inequality problems by domestic and foreign scientists allowed concluding that one of the main measures to reduce inequality around the world is considered taxation. To achieve the set goal, a set of methods of scientific knowledge was used, including analysis, synthesis, as well as special ones: comparisons, groupings, generalizations. Results: the causes influencing inequality are identified. The factors influencing income inequality are presented, and the role of globalization in increasing inequality is shown. In this context, some factors may be general and truly global, but others may be specific to each country, and the result will be very different. The role of taxes in reducing inequality is revealed. The study showed that income tax is the main tax influencing the reduction of inequality. A set of tax policy measures to combat inequality is presented. The author once again emphasized that inequality in income distribution is an invariable element of any society.