Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-28T02:39:02.309Z Has data issue: false hasContentIssue false
  • English
  • Français

Maximizing Tax Revenue While Minimizing Political Costs

Published online by Cambridge University Press:  28 November 2008

Richard Rose
Richard Rose
Affiliation:
Public Policy, University of Strathclyde
Get access Rights & Permissions [Opens in a new window]

Abstract

Tax revenue is a function of laws and administration as well as economic activity. Four different theories purport to explain revenue-raising in contemporary Western nations: universal abstractions about economic systems; national culture: tax-specific characteristics; avoiding political costs through political inertia. OECD data on taxation in Western nations since 1955 show that national tax systems do not have sufficient in common to validate universalistic generalizations Tax-specific influences can be identified only for a few major sources of revenue. The inertia persistence of substantial national distinctiveness reflects a non-decision making approach to tax policy by politicians. The strategy is to rely primarily upon revenue-buoyant taxes authorized by past legislation rather than risk the political blame for introducing new taxes to raise large amounts of needed additional revenue.

Type
Articles
Information
Journal of Public Policy , Volume 5 , Issue 3 , August 1985 , pp. 289 - 320
Copyright
Copyright © Cambridge University Press 1985

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Aaron, Henry and Galper, Harvey (1985) Assessing Tax Reform. Washington, DC: Brookings Institution.Google Scholar
Aguirre, Carlos A., Griffith, Peter S. and Yucelik, M. Z. (1981). Taxation in Sub-Saharan Africa. Washington, DC: International Monetary Fund Occasional Paper 8.Google Scholar
Alt, James E. (1983). The Evolution of Tax Structures, Public Choice, 41, 181–222.CrossRefGoogle Scholar
Ardant, Gabriel (1975) Financial Policy and Economic Infrastructure of Modern States and Nations. In Tilly, Charles, ed., The Formation of National States in Western Europe, Princeton: Princeton University Press, 164–242.Google Scholar
Bell, Daniel (1973). The Coming of Post Industrial Society. New York: Basic Books.Google Scholar
Braun, Rudolf, (1975). Taxation, Socio-Political Structure and State Building: Great Britain and Brandenburg-Prussia. In Tilly, Charles, ed., The Formation of National States in Western Europe. Princeton:. Princeton University Press, 243–327.Google Scholar
Caiden, Naomi and Wildavsky, Aaron (1980) Planning and Budgeting in Poor Countries. New Brunswick, NJ: Transaction Books edition.Google Scholar
Castles, FrancisG. ed. (1982) The Impact of Parties. London and Beverly Hills: Sage Publications.Google Scholar
Chenery, Hollis and Syrquin, Moses (1975) Patterns of Development: 1950–1970. New York: Oxford University Press.Google Scholar
Clarke, SirRichard.(1973) The Long-Term Planning of Taxation. In Crick, B. and Robson, W. A., eds. Taxation Policy. Harmondsworth: Penguin, 153–70.Google Scholar
David, Martin (1981) The Use of Attitude Surveys in Determining Tax Policy. In Roskamp, K. W. and Forte, F., eds., Reforms of Tax Systems. Detroit: Wayne State University Press, 209–233.Google Scholar
Feldstein, Martin (1976) On the Theory of Tax Reform, Journal of Public Economics, 6, 1–2, 77–104.CrossRefGoogle Scholar
Gallup, Poll (1985) Gallup Political Index. No. 293 London.Google Scholar
Goode, Richard (1984) Governmental Finance in Developing Countries. Washington, DC: Brookings Institution.Google Scholar
Greider, William (1982) The Education of David Stockman and Other Americans. (New York: E.P. Dutton).Google Scholar
Hadenius, Axel (1985) Citizens Strike a Balance: Discontent with Taxes, Content with Spending, Journal of Public Policy. 5, 3.CrossRefGoogle Scholar
Hansen, Susan B. (1983) The Politics of Taxation: Revenue without Representation. New York: Praeger.Google Scholar
Heclo, Hugh (1981) Toward a New Welfare State? In Flora, P. and Heidenheimer, A., eds., The Development of Welfare Slates in Western Europe and America. New Brunswick, NJ: Transaction Books, 383–406.Google Scholar
Hinrichs, Harley (1966) A General Theory of Tax Structure Change during Economic Development. Cambridge, Mass: Harvard University Law School.Google Scholar
Hogwood, B. W. and Peters, B. Guy (1983) Policy Dynamics. Brighton: Wheatsheaf.Google Scholar
Hood, Christopher (1976). The Limits of Administration. London and New York: John Wiley.Google Scholar
Hood, Christopher (1984) Adaptation in British Tax Structure. Glasgow: U. of Strathclyde Studies in Public Policy No. 125.Google Scholar
International Monetary Fund (1983) Government Finance Statistics Yearbook. Vol. 7 Washington, DC: International Monetary Fund.Google Scholar
Kavanagh, Dennis (1980) Political Leadership: the Labours of Sisyphus. In Rose, R., ed., Challenge to Governance. London: Sage Publications, 215–35.Google Scholar
Kay, J. A. and King, M. A. (1983) The British Tax System. London: Oxford University Press, 3rd ed.Google Scholar
Kerr, Clark (1983) The Future of Industrial Societies. Cambridge, Mass: Harvard University Press.CrossRefGoogle Scholar
Lewis, Alan (1982) The Psychology of Taxation. Oxford: Martin Robertson.Google Scholar
Messere, Ken (1983) Trends in OECD Tax Revenues. In Cnossen, S., ed., Comparative Tax Studies: Essays in Honor of Richard Goode. Amsterdam: North-Holland, 31–57.Google Scholar
Musgrave, R. (1969) Fiscal Systems. New Haven: Yale University Press.Google Scholar
OECD (1984) Revenue Statistics of OECD Member Countries, 1965–1983 Paris: Organisation for Economic Co-operation and Development.Google Scholar
OECD (1984a) Tax Expenditures: a Review of the Issues and Country Practices. Paris: Organisation for Economic Co-operation and Development.Google Scholar
OECD (1985) Social Expenditure, 1960–1990: Problems of Growth and Control. Paris: OECD.Google Scholar
Peacock, Alan (1981) Fiscal Theory and the ‘Market’ for Tax Reform. In Roskamp, K. W. and Forte, F., eds., Reforms of Tax Systems. Detroit: Wayne State University Press, 11–21.Google Scholar
Price, R. W. R. and Chouraqui, Jean-Claude (1983) Public Sector Deficits: Problems and Policy Implications. OECD Occasional Studies. (Paris: OECD, 06), 11–44.Google Scholar
Robinson, Ann and Sandford, Cedric (1983) Tax Policy-Making in the United Kingdom. London: Heinemann.Google Scholar
Rose, Richard (1984) Understanding Big Government: the Programme Approach. London & Beverly Hills: Sage Publications.Google Scholar
Rose, Richard (1984a) Are Laws a Cause, a Constraint or Irrelevant to the Growth of Government?. Glasgow: U. of Strathclyde Studies in Public Policy No. 124.Google Scholar
Rose, Richard (1985) The Programme Approach to the Growth of Government British Journal of Political Science. 15, 1, 1–28.CrossRefGoogle Scholar
Rose, Richard and Karran, Terence (1983) Increasing Taxes, Stable Taxes, or Both? The Dynamics of United Kingdom Tax Revenues since 1948. Glasgow: U. of Strathclyde Studies in Public Policy No. 116.Google Scholar
Rose, Richard and Karran, Terence (1984) Inertia or Incrementalism?: A Long Term View of the Growth of Government. In Groth, A. J. and Wade, L. L., eds., Comparative Resource Allocation. Beverly Hills and London: Sage Publications, 43–71.Google Scholar
Rose, Richard and Page, Edward C. (1982) Chronic Instability in Fiscal Systems. In Rose, and Page, , eds., Fiscal Stress in Cities. Cambridge: Cambridge University Press.Google Scholar
Rose, Richard and Peters, B. Guy (1978) Can Government Go Bankrupt?. New York: Basic Books.CrossRefGoogle Scholar
Roskamp, R. W. and Forte, F. eds., (1981) Reforms of Tax Systems:. Detroit: Wayne State University Press for the International Institute of Public Finance.Google Scholar
Saunders, Peter and Klau, Friedrich (1985) The Role of the Public Sector. Paris: OECD Economic Studies. No. 4.Google Scholar
Stein, Herbert (1984) Presidential Economics. (New York: Simon & Schuster).Google Scholar
Stern, Nicholas (1984) Optimum Taxation and Tax Policy. Washington, DC: International Monetary Fund Fiscal Affairs Department Paper, DM/84/9.Google Scholar
Surrey, Stanley S. and McDaniel, Paul R. (1985). Tax Expenditure. Cambridge, Mass: Harvard University Press.CrossRefGoogle Scholar
Tanzi, Vito (1980) Inflation and the Personal Income Tax. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Tanzi, Vito (1982) Tax Policy in Middle-Income Countries: Some Lessons of Experience, Bulletin of the International Bureau of Fiscal Documentation, 411–420.Google Scholar
Taylor, Charles L. (1981) Limits to Governmental Growth. In Merritt, R. L. and Russett, B. M., eds., From National Development to Global Community: Essays in Honour of Karl W. Deutsch. Boston: Allen & Unwin, 96–114.Google Scholar
Wildavsky, Aaron (1985), Keeping Kosher: the Epistemology of Tax Expenditures, Journal of Public Policy, 5, 3.CrossRefGoogle Scholar
Witte, John F. (1985) The Politics and Development of the Federal Income Tax. (Madison: U. of Wisconsin Press).Google Scholar