How does tax evasion impact inequality?

Can you explain how tax evasion affects economic inequality?

Tax evasion contributes to economic inequality by reducing government revenue, which limits funding for public services that benefit lower-income individuals.

What are some examples of how this plays out in society?

For instance, when wealthy individuals evade taxes, it can lead to cuts in social programs like education and healthcare, disproportionately affecting the less affluent.

Are there any statistics that show the impact of tax evasion on inequality?

Yes, studies have shown that tax evasion can increase the wealth gap, with estimates suggesting that billions in tax revenue are lost annually, exacerbating inequality.

What can be done to reduce tax evasion?

Strengthening tax enforcement, increasing transparency, and closing loopholes are effective strategies to reduce tax evasion and its impact on inequality.