The Political Economy Of Taxation: Analyzing Tax Policies And Public Welfare

Abstract

Taxation is a fundamental instrument of economic policy that shapes public welfare and economic development. This research paper analyzes the political economy of taxation by examining how tax policies influence economic growth, income distribution, and government efficiency. It explores the role of political ideologies, interest groups, and institutional frameworks in shaping tax structures and their impact on social welfare. The study further investigates the balance between progressive and regressive taxation, evaluating their effectiveness in achieving equity and economic stability. By assessing case studies from different economies, this paper highlights the implications of tax policies on poverty alleviation, wealth redistribution, and overall economic sustainability. The findings suggest that an optimal tax policy should align with both economic efficiency and social justice to enhance public welfare and ensure long-term fiscal stability.