Author(s)

JuanJuan Huang^*,  ChaoMin Gao

Affiliation(s)

School of Business Administration, Baise University, Baise 533000, Guangxi, China.

Corresponding Author

JuanJuan Huang

ABSTRACT

This study aims to explore the relationship between fiscal policy and income inequality, analyzing the effects of different fiscal policies in regulating income distribution. Through literature review and case studies, the research finds that progressive taxation and public spending policies play significant roles in alleviating income disparity, especially evident in Nordic countries. In contrast, the effectiveness of fiscal policies in the United States and China is influenced by various factors, including economic development levels and social structures. The findings suggest that governments should optimize taxation and public spending while considering regional development differences to achieve more effective wealth redistribution and promote common prosperity.

KEYWORDS

Fiscal policy; Income inequality; Progressive taxation; Public spending; Wealth redistribution; Common prosperity

CITE THIS PAPER

JuanJuan Huang,  ChaoMin Gao. Fiscal policy and income inequality: a comparative study of policy effects. World Journal of Sociology and Law. 2024, 2(3): 7-10. DOI: https://doi.org/10.61784/wjsl3006.

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