ABSTRACT
Introduction In this chapter, I would like to examine the taxation-inequality link from a macroeconomic perspective. In particular, I would like to see whether and how taxation affects distributive outcomes from a macroeconomic point of view. From a macroeconomic perspective, taxation is seen as a tool for macroeconomic stabilization with an ability to smooth business cycles. There has, however, been considerable interest in recent years in linking this macroeconomic stabilization function of taxation with issues of inequality from different angles, and this chapter will delve into this topic intensively.
