Between distribution and allocation

Growth Models, Sectoral Coalitions and the Politics of Taxation Revisited

Bibliographic Data

ID3136117
AuthorsLukas Haffert (0000-0002-3594-0049, University of Zurich, corresponding author), Daniel Mertens (0000-0002-2194-8293, Goethe University Frankfurt)
Year2021
Volume19
Issue2
Pages487-510
Publication date2021-07-30
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSocio-Economic Review (JOURNAL)
Journal identifiersISSN: 1475-1461 • E-ISSN: 1475-147X
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ser/mwz038
OpenAlexW2965470632
LanguageEN
Citations received24
References cited47

Comparative political economists typically analyze taxation as a matter of distribution. This article, by contrast, develops an allocational explanation of tax policy choices: as taxes channel resources into some economic activities and restrain others, they become subject to the allocational concerns of different sectors of the economy. We argue that sectoral coalitions straddling the class divide substantially influence the development of tax systems, and that the power of these coalitions is associated with differences in growth models. Employing a mixed methods approach, we first demonstrate a systematic association between growth models and consumption taxation across advanced capitalist countries. Afterward, we study the German value-added tax increase in 2005 to illustrate the political dynamics behind this result. In this debate, an export sector coalition prevailed over a domestic sector coalition that strongly opposed the reform. We conclude by discussing the wider implications for the study of taxation and comparative capitalism

Capitalism · Consumption (sociology) · Distribution (mathematics) · Economic system · Economics · German · Political science · Politics · Power (physics) · Public economics · Sociology · Corporate Taxation and Avoidance · Social Policy and Reform Studies · Taxation and Compliance Studies