Analyzing the role and impacts of Tax revenues on Income distribution and Human development (A Case Study of Iran)

Tax is one of the most important sources of government expenditures, and an effective policy instruments in economic stabilization is economic resources allocation and also adjustment of income inequality. The purpose of this paper is to study the impact of tax revenues on income distribution and human development which regard to the relationship between income distribution and human development in theoretical and experimental issues can be used of "Human Development Index" as an indicator of income distribution. Hence, we use Autoregressive Distributed Lag (ARDL) model for 1971- 2014 period. The results shows that with increasing share of direct tax revenues and reducing the share of indirect tax revenues of GDP, Human Development Index decreased and exacerbate inequality in the income distribution and also, unemployment rate decrease and oil revenues increase, will improve sustainable human development. At last, inflation has a positive relationship with the Human Development Index, although this relationship is not significant.