Correlation between the share of taxation in GDP and inequality (Gini coefficient)
Year: 2025
Type: conference-paper
Abstract: Collected revenues from taxes are an important financial resource, for central and local government, in the purpose of carrying out a large area of activities, but at the same time, they have an impact on several socio-economic components. Following the evolution of the changes in the tax data, one can notice their influence on the values of inequality, the correlation between the change in the share of taxes and the increase or decrease of the inequality. The way to measure inequality is the Gini coefficient. In this paper the analysis was carried out for the period 2014-2022 and followed the dynamic movement of values, namely the increase or decrease of taxes (% in GDP) and inequality (Gini coefficient), both at the level of European Union and at the level of European Union¢s Member States. In the analysis of the impact of changes of taxation on inequality (Gini coefficient), data on total taxes and on ineguality (Gini coefficient) were used. The results obtained show the impact of tax changes (% in GDP) on inequality (Gini coefficient), on each Member Country of the European Union (EU 27) and on each year of the period. The methodologyused in the paper was: studying the scientific literature in the field, selecting, synthesizing and interpreting the ideas retained through the own view of the author; collecting data from the European Commission, DG Taxation and Customs Union, based on Eurostat, and Eurostat,. calculations, processing data collected and drawing up the tables necessary for the analyze of the correlation of indicators; analysis of indicators and the correlation between them, for European Union (EU 27), each Member Country of the European Union (EU 27), for each year of the period 2014-2022, and drawing conclusions regarding the final results of the paper.
Author: Florina Popa
Institutions: Institute of National Economy, Romanian Academy
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: green
OpenAlex ID: W6893361777