For example, raising labour income taxes would improve equity in the short term, given their progressivity. This, however, could have adverse effects on longterm growth as income tax hikes are among the most distortive tax instruments, in view of their sizeable effects on labour utilisation, productivity, and human capital accumulation 0ohansson et al., Confining the increases only to top incomes would reduce the trade-off between equity and growth, but the budgetary impact can be small due to tax avoidance, unless measures to reduce tax evasion are implemented (Rawdanowicz et al.,