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Inequality pp 187-231 | Cite as

Can Tax Reforms Reduce Inequality?

  • Ahmad Seyf
Chapter
Part of the International Papers in Political Economy book series (IPPE)

Abstract

This chapter examines the impact of tax reforms on inequality. It begins with an examination of the meaning of inequality and its dimensions. While the usual division of 1% and 99% has its own merit, this chapter argues that the situation is more complex, especially among the 99%. The real income of those in the middle of the distribution has also stagnated in recent decades. On the other hand, primarily due to inadequate investment, growth rate in most economies has been sluggish. This chapter focuses on policies to reduce inequality and proposes two sets of reforms. First, given the regressive nature of indirect taxation, the balance between direct and indirect taxation should alter. The second set of reforms should try to make our tax system more efficient. To be more effective, the size and composition of fiscal intervention should change and more resources should become available to tackle inequality.

Keywords

Taxes and transfers Inequality Tax havens Tax system 

JEL Classification

I31 I38 J51 L43 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Ahmad Seyf
    • 1
  1. 1.MemberCambridge Centre for Economic and Public PolicyCambridgeUK

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