tax policy
Download
Skip this Video
Download Presentation
Tax policy

Loading in 2 Seconds...

play fullscreen
1 / 26

Tax policy - PowerPoint PPT Presentation


  • 254 Views
  • Uploaded on

Tax policy. POLI 352A. Taxes: Extracting resources. Income Consumption Social insurance Wealth Corporation Tax expenditures. Varieties of tax policy. United States Progressive Heavy corporate burden Light consumption tax Lots of tax expenditures Sweden Regressive

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Tax policy' - Gideon


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
tax policy

Tax policy

POLI 352A

taxes extracting resources
Taxes: Extracting resources
  • Income
  • Consumption
  • Social insurance
  • Wealth
  • Corporation
  • Tax expenditures
varieties of tax policy
Varieties of tax policy
  • United States
    • Progressive
    • Heavy corporate burden
    • Light consumption tax
    • Lots of tax expenditures
  • Sweden
    • Regressive
    • High consumption tax
    • Light on active capital
varieties of tax policy7
Varieties of tax policy
  • United Kingdom
    • Unstable and incoherent
u s fragmentation
U.S.: Fragmentation
  • Fragmented political authority
  • Interest groups: Opportunities for narrow demands

 Narrow organization of interests and demands

 Heavy tax rates but

      • Narrow tax expenditures
  • Weak parties, interest groups

 Hard to make social bargains

 Liberals reject consumption tax

      • Even though it could finance social spending
sweden coherence and compromise
Sweden: Coherence and compromise
  • Proportional representation

 Stable Social Democratic dominance

    • But minority = need for compromise
  • Interest groups and politicians: Incentives to compromise
  • Neo-corporatism, strong parties
    • Makes bargaining easier

 Broad policy bargains

    • E.g., consumption taxes for social spending
united kingdom incoherence and instability
United Kingdom:Incoherence and instability
  • Centralized authority

Power for policy change

 Adversarial party politics

  • Politicians: Incentives to campaign on polarized promises
    • Keep them without compromise
    • But administratively impossible to reverse all previous choices
blame avoidance tax visibility
Blame avoidance:Tax visibility
  • Least popular taxes are most visible
    • Property and income
  • Regressive, but less-visible taxes accepted
    • Social insurance and consumption

 Big spenders rely more on less-visible taxes

  • How?
    • Social bargains using neo-corporatist structures
blame avoidance tax cut visibility
Blame avoidance:Tax cutvisibility
  • Bush tax cuts
    • Far from median voter

BUT

    • Overall costs delayed
    • Sunset provisions hide cost
    • Skewed distributive effects delayed
    • Immediate (but small), visible benefits for everyone
    • Framing
conclusion
Conclusion
  • Effects of institutional-interest group regimes
    • Fragmented
    • Inclusive
    • Adversarial
  • Institutions shape actors’ policy demands
  • Policy design crucial method of blame-avoidance
  • Policy “choices” don’t necessarily reflect intentions
debating policymaking regimes
Debating policymaking regimes
  • Four policymaking regimes
    • Westminsters (Parliamentary, FPTP) pluralist interests
    • Parliamentary, PR, neo-corporatist interests
    • Presidential, weak parties, pluralist interests
    • -- Westminster plus federalism
  • Each group comes up with reasons why their regime is best
    • Define “best” – what criteria are you using?
    • If you use “democratic” as a criterion, define what you mean
    • Examples of types of policies
    • All group members take notes
ad