The Role of Progressive Income Tax in relation to Economic Development

This paper attempts to investigate the role of progressive income taxation in promoting economic development. The methodology adopted for the study is a review of literature on progressive income taxation. The study initially focuses on the historical and theoretical evolution of progressive income taxation. In this paper, the articulation of ideas on how progressive taxation impacts the economic development is based on its influence on economic efficiency, stability, growth and income inequality. The developed analysis and the review of literature reflect unfavorable prospects about progressive taxation in achieving higher level of economic growth and development. Moreover, the study attempts to provide feasible policy recommendations to curtail the adverse effects of progressive income taxation on economic development