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Redistribution and the Tax System: A Social Policy Perspective

Published online by Cambridge University Press:  23 May 2025

Sally Ruane Open the ORCID record for Sally Ruane [Opens in a new window]
Sally Ruane*
Affiliation:
School of Applied Social Sciences, Faculty of Health and Life Sciences, De Montfort University, Leicester, UK
*
Email: sruane@dmu.ac.uk
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Abstract

This article problematises two concepts frequently used in debates about resource allocation.

The term ‘system’ evokes a ‘unified whole’ and emphasises interaction among the different component parts within the system. However, the notion of a tax system insulated from the world around it obstructs an analysis of the ways in which interactions of tax arrangements with other elements of society shape distributional outcomes. The article argues that tax arrangements need to be understood as an open system.

Next, the article problematises the concept of ‘redistribution’ by examining the limitations of current approaches to redistribution. First, pre-distribution, referring to decisions about tax expenditures, is often overlooked, although it reflects allocation decisions that not only benefit recipients but also result in foregone revenues that might have been used for redistribution. Second, analyses of redistribution often focus exclusively on income. Third, taxes shape the kind of society we have in ways that limit future possibilities of redistribution. The article proposes the concept of structural redistribution to denote redistribution, which goes beyond redistribution among groups to change the nature of society.

Keywords

taxationredistributiontax systeminequalitysocial policy
Type
State of the Art
Information
Social Policy and Society , First View , pp. 1 - 14
Copyright
© The Author(s), 2025. Published by Cambridge University Press

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