Tax policies are one of the most powerful tools governments use to address economic inequality, stimulate growth, and redistribute wealth. However, different countries take vastly different approaches to taxation, leading to varying levels of income equality, social services, and business competitiveness. Some nations implement high progressive taxation to fund welfare programs, while others adopt low-tax, free-market policies to encourage investment and economic expansion. This project challenges students to compare two countries with opposing tax policies, examining how these differences impact economic inequality and overall economic performance.

Students will begin by researching two countries with contrasting tax systems, such as Sweden and the United States, or Singapore and France. They should analyze the types of taxation each country uses—including income tax, corporate tax, value-added tax (VAT), and capital gains tax—and assess how these policies affect individual wealth distribution, business growth, and government revenue.

A major focus of this project is evaluating how taxation influences inequality and economic mobility. Students should examine whether higher tax rates on the wealthy reduce income disparity or whether they discourage entrepreneurship and job creation. Conversely, they should explore whether low-tax policies encourage economic growth or if they contribute to rising inequality by allowing wealth concentration at the top. Case studies on countries that successfully reduced inequality through taxation versus those with low-tax systems and high inequality rates will provide critical insight.

Another key aspect is analyzing government spending and public services in each country. Students should compare how high-tax nations fund universal healthcare, education, and social welfare versus how low-tax economies rely on private sector solutions. They should also consider whether higher government intervention leads to stronger economic stability or whether lower taxation allows greater individual financial freedom.

The final report should compare the economic and social effects of each country’s tax system, determining which approach is more effective in promoting both economic growth and income equality. The goal of this project is for students to understand that taxation is not just about revenue collection—it shapes economic structures, influences social policies, and affects overall economic fairness.