Background of the Study
Progressive taxation, where the tax rate increases as the taxpayer's income rises, is widely regarded as an effective tool for reducing income inequality and ensuring fair economic distribution. In Dekina LGA, progressive taxation could serve as a means to bridge the growing wealth gap and provide the government with resources to fund public services and infrastructure. This study seeks to examine how progressive taxation is being implemented in Dekina LGA and its potential impact on wealth distribution and social welfare in the region.
Statement of the Problem
Dekina LGA faces significant income disparity among its residents, which hinders equitable access to resources and opportunities. While progressive taxation has been proposed as a solution to reduce income inequality, there is limited research on its effectiveness within the context of the local government. This study will explore how progressive taxation impacts the economic disparity in Dekina LGA and assess whether it has been successful in achieving its redistributive goals.
Aim and Objectives of the Study
Aim: To evaluate the role of progressive taxation in reducing income inequality in Dekina LGA.
Objectives:
To examine the current structure of progressive taxation in Dekina LGA.
To assess the impact of progressive taxation on income redistribution in Dekina LGA.
To evaluate public perception regarding the fairness of progressive taxation in Dekina LGA.
Research Questions
How is progressive taxation currently structured in Dekina LGA?
What impact does progressive taxation have on income inequality in Dekina LGA?
How do the residents of Dekina LGA perceive the fairness of progressive taxation?
Research Hypothesis
H₀: Progressive taxation does not significantly impact income inequality in Dekina LGA.
H₀: The implementation of progressive taxation has no effect on income redistribution in Dekina LGA.
H₀: The public in Dekina LGA does not perceive progressive taxation as a fair system.
Significance of the Study
This study will contribute to understanding how progressive taxation can be used as a tool for wealth redistribution in Dekina LGA. The findings will be valuable for policymakers looking to design tax systems that can effectively reduce economic disparity and promote social welfare.
Scope and Limitation of the Study
The study will focus on the role of progressive taxation in Dekina LGA. Limitations include challenges in obtaining detailed financial data from tax authorities and local residents who may not be willing to participate due to privacy concerns.
Definition of Terms
Progressive Taxation: A tax system where the tax rate increases as the income of the taxpayer rises.
Income Inequality: The unequal distribution of wealth and income among individuals or groups in society.
Tax Redistribution: The process through which the government redistributes wealth by collecting taxes from higher-income individuals and using the proceeds for public services and welfare programs.
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