Effectivenness of Progressive Tax in Reducing Economic Inequality in accordance with SDG 10: Reducing Inequality

Abstract

Economic inequality is one of the global challenges that has received attention in the Sustainable Development Goals (SDGs), particularly in goal 10 which focuses on reducing inequality. Progressive tax is considered as one of the effective fiscal policy instruments in addressing economic inequality. This article aims to analyze the effectiveness of progressive tax in reducing economic inequality through a literature review approach. The results show that progressive tax has great potential in distributing income more fairly, increasing state revenue, and supporting social programs aimed at reducing economic inequality. However, its effectiveness depends on the policy design, the level of taxpayer compliance, and the capacity of tax administration in a country.