This paper examines the potential tradeo between economic growth and income inequality in the design of tax structure by using a structural model and a large panel data set of 150 developed and developing countries for the period 1970-2009. Tax structure, which is treated as an endogenous variable in the estimations, is comprehensively proxied by a series of indicators, including major tax categories measured in both levels and rates, an index for overall tax mix, and an index for tax progressiv