On this page
Research Article | Open Access
Volume 14 2022 | .
SDG’S TARGET TO REDUCE INEQUALITIES: INDIA'S CHALLENGES AND PROSPECTS
Barsha Mohanty, Prof. Satya Narayan Misra, Sanjaya Kumar Ghadai
Pages: 573-581
Abstract
The Sustainable Development Goal (SDG) Target 10 aims at reducing inequalities in different aspects. The Niti Aayog of India monitors progress achieved by different states and sets out a collaborative agenda. This paper specifically looks at the trends in Gini coefficient in different states, impact of high income inequality on index of health in developed economies and how political ideology and progressive taxation policy can play a decisive role in thwarting the present disturbing trends. The paper brings out how income share of the 40% middle class in national GDP has come down after economic liberalization, while the share of top 10% has gone up significantly. In developed countries, acute income inequality seems to dampen the index of health and general well-being. The paper looks at the impact of political ideology on income inequality and takes up specifically Keznet’s inverted U curve which showed after achievement of a high level of percapita income, inequality will come down. This was proved to be un-true by Thomas Piketty, based on tax data (1910-2010) which clearly shows that inequality increased in developed economies due to significant reduction in tax rate of top rich segment of society, and soft approach towards imposing wealth tax. The paper brings out, how the Laffer Curve (1986) mooted by Arthur Laffer provided the economic justification for bringing down tax rate on top rich from 71% to 35% in the USA. The paper rebuts the general assumption that high tax rates would disincentize investment. The authors recognize that increase in tax rates and high wealth tax in a market oriented political economy may not be a feasible proposition.
Keywords
SDG, Laffer Curve, Inverted U Curve, Merit Goods, Gini Coefficient
PDF
30
Views
10
Downloads