Olusanya, Peter and Oyebo (2012) studied taxation as a fiscal policy tool for income reallocation among Lagos state civil servants. They used the spearman's rank correlation coefficient to analyse the **data** they collected. The study revealed that there is a positive relationship between tax as a fiscal policy tool and income reallocation. Engenand and Skinner (1996) who studied the relationship between taxation and economic growth of the United State, establish that there is a modest effect on the direction of 0.2 to 0.3 percentage point changes in growth rates in answer to major tax reforms. Their findings propose that such slight influence can cumulatively have large impact on the standards of living of citizens.