This paper uses a panel dataset of 80 developed and developing economies to investigate the empirical effect of tax structure on economic growth and income inequality simultaneously.The author uses both conventional OLS, as well as 2SLS and 3SLS estimation methods to determine such effects. Because both the growth and inequality equations likely suffer from endogeneity, Lee and Gordon’s (2005) inverse-of-distance weighted tax instrument is used asa measure of own-country tax rate to overcome the reverse causality bias. Moreover, the author distinguishes between the impact of the top statutory tax rate on corporations and individuals and finds statistically significant results for all proposed relationships, except for personal income tax and growth. The obtained results are in line with previous research, suggesting that corporate and personal income likely have different incentive outcomes.