Book contents
- Frontmatter
- Contents
- List of appendixes
- List of figures
- List of tables
- Notes on contributors
- Acknowledgements
- 1 Introduction: the diffusion of liberalization
- 2 Tax policy in an era of internationalization: an assessment of a conditional diffusion model of the spread of neoliberalism
- 3 The decision to privatize: economists and the construction of ideas and policies
- 4 The international diffusion of public sector downsizing: network emulation and theory-driven learning
- 5 Global ideology and voter sentiment as determinants of international financial liberalization
- 6 Competing for capital: the diffusion of bilateral investment treaties, 1960–2000
- 7 Diffusion and the spread of democratic institutions
- 8 World society and human rights: an event history analysis of the Convention on the Elimination of All Forms of Discrimination against Women
- 9 Conclusion
- Index
- References
2 - Tax policy in an era of internationalization: an assessment of a conditional diffusion model of the spread of neoliberalism
Published online by Cambridge University Press: 04 August 2010
By
Book contents
- Frontmatter
- Contents
- List of appendixes
- List of figures
- List of tables
- Notes on contributors
- Acknowledgements
- 1 Introduction: the diffusion of liberalization
- 2 Tax policy in an era of internationalization: an assessment of a conditional diffusion model of the spread of neoliberalism
- 3 The decision to privatize: economists and the construction of ideas and policies
- 4 The international diffusion of public sector downsizing: network emulation and theory-driven learning
- 5 Global ideology and voter sentiment as determinants of international financial liberalization
- 6 Competing for capital: the diffusion of bilateral investment treaties, 1960–2000
- 7 Diffusion and the spread of democratic institutions
- 8 World society and human rights: an event history analysis of the Convention on the Elimination of All Forms of Discrimination against Women
- 9 Conclusion
- Index
- References
Summary
Neoliberal reforms in public policies and economic institutions proliferated across the developed democracies and the globe in the latter decades of the twentieth century. National structures of taxation have not been immune to neoliberalism. Beginning in the early 1980s, policymakers throughout the Organization for Economic Cooperation and Development (OECD) significantly altered the content of tax policies. The relative priority accorded equity and growth goals, the use of investment and behavioral incentives, and the level of tax rates were all notably changed: marginal income and corporate profits tax rates were scaled back, the number of brackets were cut and inflation-indexed, and tax-based investment incentives were eliminated or reduced to broaden the tax base. Why have nearly all developed nations enacted this set of market-conforming tax policies?
To answer this question, I build on my recent work on the determinants of change in tax policy in the developed democracies and explore the dynamics of diffusion of the neoliberal tax policy paradigm in the area of capital taxation. While I assess general competition, policy learning, and social emulation models of tax policy diffusion, I argue that the highly visible 1986 market-conforming tax reform in the United States should be especially important in promoting diffusion. Specifically, I argue that (asymmetric) competition for mobile assets associated with US reforms significantly influences national policy choices in other polities.
- Type
- Chapter
- Information
- The Global Diffusion of Markets and Democracy , pp. 64 - 103Publisher: Cambridge University PressPrint publication year: 2008
References
and . 2004. Remodeling the Competition for Capital: How Domestic Politics Erases the Race to the Bottom. American Political Science Review 98 (2):261–76.CrossRefGoogle Scholar
. 2001. Time-Series – Cross-Section Data: What We Have Learned in the Past Few Years. American Review of Political Science 4: 271–93.CrossRefGoogle Scholar
and . 1996. Nuisance versus Substance: Specifying and Estimating Time-Series-Cross-Section Models. Political Analysis 6: 1–36.CrossRefGoogle Scholar
Blanchard, Oliver and Justin Wolfers. 1999. The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence. Unpublished manuscript, Department of Economics, MIT.
Bonturi, Marcos and Kiichiro Fukasaku. 1993. Global and Intra-firm Trade: An Empirical Note. OECD Economic Studies No. 20.
and , eds. 1990. World Tax Reform: Case Studies of Developed and Developing Countries. San Francisco: ICS Press.Google Scholar
and . 2002. Duration Models for Repeated Events. Journal of Politics 64 (4):1069–94.CrossRefGoogle Scholar
and . 2001. The Rise of Neoliberalism and Institutional Analysis. Princeton, NJ: Princeton University Press.Google Scholar
Carey, David and Josette Rabesona. 2002. Tax Ratios on Labour and Capital Income and on Consumption. OECD Economic Studies No. 35.
. 1998. Comparative Public Policy: Patterns of Post-war Transformation. Northhampton, MA: Edward Elgar.Google Scholar
, ed. 1993. Families of Nations: Patterns of Public Policy in Western Democracies. Brookfield, VT: Dartmouth.Google Scholar
Coopers and Lybrand International Tax Network. Selected years. International Tax Summaries. New York: Wiley.
, , and . 1995. Tax Reforms and Investment: A Cross-Country Comparison. NBER Working Paper 5232. Cambridge, MA: National Bureau of Economic Research.
European Commission. 2004. Structures of the Taxation Systems in the European Union: Data 1995–2002. Luxembourg: Office of the Official Publications of the European Commission.
. 1982. In Defense of Multiplicative Terms in Multiple Regression Equations. American Journal of Political Science 26 (4):797–833.CrossRefGoogle Scholar
Ganghof, Steffen. 2000. Adjusting National Tax Policy to Economic Internationalization: Strategies and Outcomes. In Welfare and Work in the Open Economy Volume II: Diverse Responses to Common Challenges, edited by and , 597–645. Oxford: Oxford University Press.CrossRefGoogle Scholar
Ganghof, Steffen. 2004. Progressive Income Taxation in Advanced OECD Countries: Revisiting the Structural Dependence of the State on Capital. Paper presented at the 100th Annual Meeting of the American Political Science Association, September, Chicago.
and . 2004. Globalization and the Dilemma of Income Taxation in Australia. Australian Journal of Political Science 39 (3):519–34.CrossRefGoogle Scholar
. 1998a. Partisan Politics in the Global Economy. New York: Cambridge University Press.CrossRefGoogle Scholar
. 1998b. Global Markets and National Policies: Collision Course or Virtuous Circle? International Organization 52 (4):787–824.CrossRefGoogle Scholar
and . 2001. Globalization, Government Spending, and Taxation in the OECD. European Journal of Political Research 39 (2):145–77.CrossRefGoogle Scholar
Genschel, Philipp. 1999. Tax Competition and the Welfare State. Typescript, Max Planck Institute for the Study of Societies, Cologne, Germany.
1992. Can Capital Income Taxation Survive in Open Economies. Journal of Finance 47 (3):1159–80.CrossRefGoogle Scholar
1993. Policy Paradigms, Social Learning, and the State: The Case of Economic Policy Making in Britain. Comparative Politics 25 (3):275–96.CrossRefGoogle Scholar
and , eds. 2001. Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. New York: Oxford University Press.CrossRefGoogle Scholar
and . 1998. Internationalization and Changes in Tax Policy in OECD Countries: The Importance of Domestic Veto Players. Comparative Political Studies 31 (3):321–53.CrossRefGoogle Scholar
. 2003. Globalization and Capital Taxation in Consensus and Majoritarian Democracies. World Politics 56 (1):79–113.CrossRefGoogle Scholar
and . 1998. Cooperation and Political Economic Performance in Affluent Democratic Capitalism. American Journal of Sociology 103 (6):1631–72.CrossRefGoogle Scholar
, , and . 1993. Social Democracy, Christian Democracy, Constitutional Structure, and the Welfare State. American Journal of Sociology 99 (3):711–49.CrossRefGoogle Scholar
and . 1998. Internationalization and the Social Democratic Welfare Model: Crises and Future Prospects. Comparative Political Studies 33 (3):353–97.CrossRefGoogle Scholar
International Monetary Fund. 1998. Balance of Trade Statistics, 1998. Washington, DC: IMF.
. 1985. Small States in World Markets: Industrial Policy in Europe. Ithaca, NY: Cornell University Press.Google Scholar
, , and , eds. 1999. Continuity and Change in Contemporary Capitalism. New York: Cambridge University Press.CrossRefGoogle Scholar
1995. On Bias, Inconsistency, and Efficiency of Various Estimators in Dynamic Panel Models. Journal of Econometrics 68 (1):53–78.Google Scholar
Mahler, Vincent and David Jesuit. 2004. State Redistribution in Comparative Perspective: A Cross-National Analysis of the Developed Democracies. Paper presented at the 100th Annual Meeting of the American Political Science Association, September, Chicago.
, , and . 1994. Effective Tax Rates in Macroeconomics: Cross-country Estimates of Tax Rates in Factor Incomes and Consumption. Journal of Monetary Economics 34 (3):297–323.CrossRefGoogle Scholar
Organization for Economic Cooperation and Development. 1987. Taxation in Developed CountriesParis: OECD.
Organization for Economic Cooperation and Development. 1994. The Jobs Study, Volumes I and II. Paris: OECD.
Organization for Economic Cooperation and Development. Selected years. International Direct Investment Statistical Yearbook. Paris: OECD.
, ed. 1988. World Tax Reform: A Progress Report. Washington, DC: The Brookings Institution.Google Scholar
. 1997. The Correlates of Change in International Financial Regulation. American Political Science Review 91 (2):531–52.CrossRefGoogle Scholar
. 1997. Has Globalization Gone Too Far?Washington, DC: Institute for International Economics.Google Scholar
Slemrod, Joel. 1990. Tax Principles in an International Economy. In World Tax Reform: Case Studies of Developed and Developing Countries, edited by and ., 11–24. San Francisco: ICS Press.Google Scholar
. 2004. Are Corporate Tax Rates, or Countries, Converging?Journal of Public Economics 88 (6):1169–86.CrossRefGoogle Scholar
Soskice, David, 1999. Divergent Production Regimes: Coordinated and Uncoordinated Market Economies in the 1980s and 1990s. In Continuity and Change in Contemporary Capitalism, edited by , , , and , 101–34. New York: Cambridge University Press.CrossRefGoogle Scholar
. 1993. Taxation and Democracy: Swedish, British and American Approaches to Financing the Modern State. New Haven: Yale University Press.Google Scholar
Steinmo, Sven. 2002. A Political Economy of Economic Ideas: Tax Policy in the 20th Century. Unpublished manuscript, Department of Political Science, University of Colorado, Boulder.
. 1992. Politics and the Structural Dependence of the State in Democratic Capitalist Nations. American Political Science Review 86 (1):38–54.CrossRefGoogle Scholar
. 1998. Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies. Political Studies 46 (4):671–92.CrossRefGoogle Scholar
. 2002. Global Capital, Political Institutions, and Policy Change in Developed Welfare States. New York: Cambridge University Press.CrossRefGoogle Scholar
Swank, Duane. 2003. Withering Welfare? Globalisation, Political Economic Institutions, and Contemporary Welfare States. In States in the Global Economy: Bringing Domestic Institutions Back In, edited by , 58–82. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
and . 2002. The New Political Economy of Taxation in Advanced Capitalist Democracies. American Journal of Political Science 46 (3):642–55.CrossRefGoogle Scholar
. 1987. The Response of Other Industrial Countries to the U.S. Tax Reform Act. National Tax Journal 40 (3):339–55.Google Scholar
Thelen, Kathleen. 1999. Why German Employers Cannot Bring Themselves to Dismantle the German Model. In Unions, Employers, and Central Banks, edited by , , and , 138–72. New York: Cambridge University Press.Google Scholar
- 12
- Cited by