Taxation and Prosperity: The Role of Tax Policies in Economic Equity and Development

DOI

10.2991/978-94-6463-652-9_6How to use a DOI?

Keywords

Economic Growth; Inequality; Tax Policy

Abstract

Policy makers and economists need to study how fiscal policies work on economic growth and wealth gap, and two major issues in this field are related to each other to form a crucial research topic. Differences in the construction of tax systems in an economy lead to a significant effect on the inequality of income distribution and the rate of development, and the imbalance in the distribution of wealth is referred to as the obvious disparity between the rich and the poor within a given economy, while the economic growth shows that the productivity increases during the period. In order to narrow the gap between the rich and the poor and increase the overall strength of the economy, it is crucial for governments around the world to adopt tax policy tools. The purpose of this thesis is to explore the impact of various tax provisions on economic growth and the gap between the rich and the poor. Based on the existing academic findings, this study analyzes in depth how tax policy works in different ways on capital accumulation, labor inputs, and the distribution of profits, and it is found that a progressive tax system is conducive to narrowing the inequality between the rich and the poor, while tax cuts are likely to widen the gap between the rich and the poor. promote economic growth in the short run but the final phase of the study formulated a series of policy recommendations aimed at improving the tax system to promote stable economic growth and equitable income distribution.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Mingzhe Zhao
PY  - 2025
DA  - 2025/02/24
TI  - Taxation and Prosperity: The Role of Tax Policies in Economic Equity and Development
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 47
EP  - 55
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_6
DO  - 10.2991/978-94-6463-652-9_6
ID  - Zhao2025
ER  -