ABSTRACT. This paper explores the tax and transfer systems in the United States and argues that by being less progressive than its counterparts, the current tax system in the United States promotes inequality of condition, which not only hinders projects that could lead to poverty alleviation but also contributes to higher rates of poverty. It is further argued that redesigning the tax system to be more progressive – that is, to require higher incomes to pay proportionally higher taxes – is instrumental in promoting equality of condition and alleviating poverty. pp. 29–43
JEL codes: H21; H71; K34
Keywords: tax system; transfer system; United States; OECD countries; income inequality; wealth inequality; equality of condition; poverty; poverty alleviation
How to cite: Gatzia, Dimitria E., and Douglas Woods (2014), “Progressive Taxation as a Means to Equality of Condition and Poverty Alleviation,” Economics, Management, and Financial Markets 9(4): 29–43.