The Politics of Income Taxation: A Comparative Analysis
Steffen Ganghof
MPIfG Book
Abstract
Marginal income tax rates in advanced industrial countries have fallen dramatically since the mid-1980s, but level and progressivity of income taxation continue to differ strongly across countries. This study offers a new perspective on both observations. It blends theoretical inquiry with focused quantitative analysis and in-depth investigation of seven countries: Germany, Australia and New Zealand as well as Denmark, Finland, Norway and Sweden. The study highlights the equity-efficiency tradeoffs that structure the politics of income taxation and analyses how income taxes are embedded in broader tax systems. It explains the limited but enduring importance of political parties and democratic institutions. Finally, the study paints a nuanced picture of the role of globalisation and thus also sheds lights on the pros and cons of tax coordination at the European and international levels.
Contents
Chapter 1 Introduction
Chapter 2 Conceptual and methodological issues in empirical veto player analysis
Chapter 3 Policy ideal types, policy change and the constraint of tax competition
Chapter 4 Domestic constraints and international policy differences
Chapter 5 Income tax reform in Australia and New Zealand
Chapter 6 Income tax reform in Scandinavia
Chapter 7 Income tax reform in Germany
Chapter 8 Party ideology, veto points and the setting of top marginal tax rates
Conclusion Income tax policy in open economies
Appendix Country abbreviations, sources and definitions
Bibliography
Index
