Taxation and Social Policy

This social policy textbook chapter examines the role of taxation in social policy. Specifically it asserts that: the tax system contributes to the distribution of resources but is often overlooked in social policy debates; different kinds of taxes differ in the way they affect inequality; tax expenditures, such as tax reliefs and allowances, often give more to the better off but lack scrutiny in public policy; policy makers believe that taxation affects the behaviour of individuals, households and firms; and there are increasing concerns about the activities of wealthy individuals and firms seeking to reduce their tax liabilities.