Abstract
This article examines fundamental theoretical concepts explaining the nature of income inequality between specific population groups under capitalism. The problem of income inequality extends beyond economic discourse, acquiring a distinctly legal dimension. The effectiveness of income redistribution policies depends largely on the quality of the legal framework governing tax, social, and labor relations, and the level of institutional coherence among government bodies. Today legal mechanisms are crucial tool for ensuring social justice and sustainable development: they define the limits of state intervention in the economy, enshrine forms of social support, and guarantee equal opportunity. Research into legal and institutional mechanisms for reducing inequality is relevant worldwide, where the effectiveness of these instruments depends on their legal coherence and how well the principles of the rule of law are implemented. This article analyzes the experiences of developed and developing countries using various methods and mechanisms aimed at reducing income inequality. On this basis, a set of economic instruments and institutional and legal mechanisms has been established that are appropriate to apply in Kazakhstan to address existing income inequality issues, taking into account the specific features of the state structure of our country, level of socio-economic development and established national traditions.