Tax policy shifts in aging societies: assessing the impact of tax mix changes on income inequality in OECD countries

This study investigates how OECD countries adapt their tax policies to demographic aging and the resulting impact on income inequality. Analyzing panel data from 2000 to 2019 across 29 OECD nations, the study finds a notable shift from income taxes to consumption and property taxes. While higher consumption taxes disproportionately burden the working-age population, exacerbating inequality, increased property taxes help reduce disparities without negatively affecting retirees. These findings underscore the need for balanced tax policies that sustain public finances while promoting social equity in aging societies.