Taxation and Income Inequality: A Comparative Analysis of Developed and Developing Countries

This study aims to conduct a comparative analysis of the relationship between taxation and income inequality in developed and developing countries. It explores how tax policies and systems differ across these two categories of countries and their implications for income distribution. The study investigates the impact of progressive income taxes, wealth taxes, and consumption taxes on reducing income disparities in both developed and developing economies. Additionally, it examines the behavioural responses of individuals and businesses to taxation in these contexts and their effects on income inequality. Through a comparative lens, the study identifies similarities, differences, and lessons that can be learned from the tax systems and policies of developed and developing countries. The findings contribute to a nuanced understanding of the role of taxation in addressing income inequality and inform policy recommendations for both developed and developing economies.