Chapter 4 | Page 168 danger that the overall economy will suffer due to reduced savings and lower investment and employment levels, which could increase the risk of greater tax evasion and avoidance. Such outcomes can negatively impact the immediate and future capacity of the State to allocate resources for ESC rights programmes. 4.3.3.2 Fairness, equity and progressiveness of taxation system Revenue measures are not human rights neutral. Apart from revenue impact, the nature, type and level of taxation can have both direct and indirect effects on human rights realisation. Therefore, in addition to revenue generation objectives, fiscal policies must also be sensitive to equity and fairness, especially in relation to the impact on individuals’ ability to enjoy their human rights. A key aspect of this requirement is to ensure that taxes are progressive; that is, the rich pay a higher percentage of their income as tax than the poor. It is argued that progressive taxes based on income and wealth are more equitable and are also more effective in mobilising resources.130 Progressive taxes can ‘lead to gentle and gradual forms of income redistribution within States without threatening economic stability or patterns of growth’,131 which is essential for the proper enjoyment of ESC rights. The need to remove regressive effects of taxation goes hand in hand with the objective of enhancing resources available to the State.132 Therefore, addressing questions of adequacy and equity in the tax system is essential from the perspective of ESC rights, not only for the direct impact on the amount of revenue governments would be able to raise, but also because of the positive human rights impact of such policy approaches. A more equitable tax system helps address a number of social and economic factors that lead to ESC rights violations. 130 Balakrishnan et al, above n 53, 12. 131 Danilo Türk, The Realization of Economic, Social and Cultural Rights, 44th sess, Agenda Item 8 of the provisional agenda, UN Doc E/CN.4/Sub.2/1992/16 (3 July 1992), [83]. 132 See for example, Olivier De Schutter, Report of the Special Rapporteur on the right to food, A/HRC/13/33/Add.6, 13th sess, Agenda Item 3, (19 February 2009).