Abstract:

Taxes are an important source of budget revenues and one of the key components of fiscal policy. The rationale for tax enforcement lies in the government's need to collect resources, to finance various activities and exercise governmental functions.

Research purpose. The present paper looks at aspects related to income inequality, how it exerts its influence on economic growth and institutional framework influence on income inequality, In this regard, it is shown a review on various studies carried out by specialists in the field who observes: the relation between inequality and economic growth, influence of the economic development stage, in income redistribution; causality relation between inequality and growth; other studies focused on the influence of fiscal policy in income redistribution, but also the impact of fiscal policy on economic growth. Also, it is analysed different authors` opinion on how the institutional framework influences income inequality, depending on the degree of institutional development, based on the study of the research carried out by various specialists in the field.