International Journal of Nonlinear Analysis and Applications

Strategic analysis of taxation factors on social justice

Document Type : Research Paper

Authors

1 Department of Public Administration, Sari Branch, Islamic Azad University, Sari, Iran

2 Department of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran

Abstract

Taxation systems across most countries often employ a progressive scale to levy taxes on individuals. However, over the past two decades of the 21st century, the level of tax progression has notably declined, marked by a reduction in the number of tax rates. This shift can be attributed to the propagation of liberal ideologies that emerged in the mid-20th century. The taxation of individuals' income can be structured under either a progressive or a flat scale of rates. However, there remains no consensus in economic theory regarding the preferable scale to adopt. In the context of a dynamic market environment with inflationary pressures, it may be prudent to link personal income tax rates not solely to absolute income levels but also to factors such as a household's subsistence level or its budget under comfortable circumstances. This proposed model of personal income tax, featuring a progressive scale, is particularly pertinent for urban centers with populations of up to 20 million people. Under this model, the tax burden for low-wage workers would increase by a modest US \$4.7 compared to the prevailing 13%. Similarly, the tax burden for medium-income earners would rise by US \$ 57.8, while for highly-paid individuals, it would increase by US \$ 372.9. Implementing this model holds the promise of substantially augmenting regional budget revenues while simultaneously narrowing the income disparity between high- and low-paid workers within the economy. This strategic approach to taxation underscores its potential to contribute to greater social justice and economic equilibrium.

Keywords

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International Journal of Nonlinear Analysis and Applications
Volume 16, Issue 10
October 2025
Pages 131-140
  • Receive Date: 16 March 2024
  • Accept Date: 20 May 2024