Honors Theses

Date of Award

2012

Document Type

Undergraduate Thesis

Department

Croft Institute for International Studies

First Advisor

Miguel Centellas

Relational Format

Dissertation/Thesis

Abstract

The purpose of conducting this study is to identify the nature of the relationship between income inequality and taxation by correlating the taxes and their observed impact on the Gini coefficient. It is hypothesized that the greater tax rates result in greater impact on the Gini coefficient — the independent variable, also called redistribution. Data is run through a regression analysis to determine the strength of the hypothesis. A positive relationship between redistribution and the level of taxation is determined to exist. It is also found that fiscal redistribution is driven primarily by the level of taxation, not by its structure. While this study cannot weigh in on what the “proper” role of the state in the economy ought to be, it does demonstrate that a larger state presence brings about a more equal society. Furthermore, it cannot confirm that more state intervention among those who are more capable of paying (higher-income earners) plays any significant role in altering inequality.

Accessibility Status

Searchable text

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.