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.
Recommended Citation
Weiss, Shantala Fabiola, "Correlating Taxation And Income Inequality: An Interregional Study" (2012). Honors Theses. 2454.
https://egrove.olemiss.edu/hon_thesis/2454
Accessibility Status
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