Article: The Impact of Economic Growth, Tax Policy and Economic Freedom on Income Inequality

Abstract

Considerable disagreement exists about how economic growth, taxes, and other policies affect the distribution of income from both a theoretical and empirical perspective. This short paper attempts to shed some light on the empirical debate about the role of tax policy in determining economic growth and the distribution of income.

JEL Codes: O4, E6

Keywords: Taxation, Economic growth, Economic freedom, Income distribution

I. Introduction

Considerable disagreement exists about how taxes and other economic policies affect the distribution of income from both a theoretical and empirical perspective. The received wisdom with regard to the impact of taxes on the distribution of income is ...

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