Tax policies will play a crucial role in addressing income inequality as technology, such as AI, threatens employment and income, according to the Economic Survey. Global disparities are a key challenge for policymakers, with India's top 1% earning 6-7% of total income and the top 10% earning one-third. The government is focusing on job creation, formal-informal sector integration, and female labor force expansion to combat inequality, emphasizing the need for effective tax policies to address the impact of technology on income and employment.