The Symphony of Fiscal Policy: Harmonizing Taxation Structures for Economic Stability, Social Equity, and Environmental Sustainability

Abstract

This paper delves into the intricate interplay between taxation structures and the broader goals of economic stability, social equity, and environmental sustainability. Drawing on a comprehensive review of the literature, the research examines how tax policies can be tailored to create a harmonious symphony that addresses these three critical dimensions. The paper begins by highlighting the significance of fiscal policy as a tool for governments to achieve multiple objectives beyond revenue generation. It then explores the challenges and complexities inherent in designing taxation structures that promote economic growth while ensuring fairness and equity in the distribution of tax burdens. Additionally, the paper examines the role of taxation in addressing environmental externalities, emphasizing the need for tax policies that incentivize sustainable practices and mitigate environmental degradation.