Taxation and Income Redistribution: A Study of Policy Effectiveness in Reducing Inequality

Abstract

Policymakers use taxes and income redistribution as instruments to combat economic inequality since it presents serious obstacles to sustainable development and community harmony. With an emphasis on progressive taxation schemes and redistributive tools like social welfare programs and direct transfers, this research investigates how well these policies work to reduce inequality. The study assesses how well these policies reduce income disparities and foster social mobility by using theoretical understandings and empirical data from various countries. The research also looks at how redistribution results are affected by administrative effectiveness, policy design, and complementary measures like labour market changes and educational programs. This study seeks to provide a thorough grasp of the elements that support or undermine policy efficacy via the analysis of case studies and cross-country data. For governments looking to put sustainable and fair policies into place to reduce inequality and promote inclusive economic development, the results provide insightful information.