ABSTRACT
Introduction In this chapter I want to discuss the relationship inequality-taxation within the field of political economy. The political economy discussion sees the relationship between taxation and inequality as shaped by the political process. In particular, the other perspectives already examined (public finance and macroeconomics) ignore the fact that taxation is not set by a benevolent dictator or produced by divine decree, but rather, in contemporary democracies, is arrived at through a collective decision-making process. This brings an entirely new set of considerations into play.
