earticle

영어

Korea has relatively serious situation in income inequality comparing with OECD countris. One of most effective policies to reduce the degree of income inequity is tax policy with a pregressive system. However, the role of income tax policy has not been played effectively, due to generous deduction and various non-taxable items. Globalization has led to wholly different environment in tax policy. The role of tax policy in income redistribution had been successful under closed economy. However, its role has been completely changed under the gloabalized economy. Income inequality will be worse in future, as world econony becomes more globalized. By using aggregate data of OECD countries, we find that globalization had some impact on tax structure, but not on tax revenue. However, Korea did not show clear evidence about this impact. We expect that Korea will, in near future, have the impact of globalization on tax structure.