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Funding the Welfare State

Globalization and the Taxation of Business in Advanced Market Economies

Bibliographic Data

ID6344716
AuthorsDuane Swank (Marquette University, corresponding author)
Year1998
Volume46
Issue4
Pages671-692
Publication date1998-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePolitical Studies (JOURNAL)
Journal identifiersISSN: 0032-3217 • E-ISSN: 1467-9248
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1111/1467-9248.00161
OpenAlexW2027555893
LanguageEN
Citations received161

Theorists assert that international capital mobility creates substantial pressure for all democratically elected governments to decrease tax burdens on business. I explicate and critique the general version of this theory and offer an alternative view. Empirically, I explore whether or not the globalization of capital markets has resulted in decreases in business social security, payroll, and profit taxes. I also investigate whether or not capital mobility has intensified government responsiveness to domestic investment and profitability. Evidence suggests that business tax burdens have not been reduced in the face of rises in capital mobility nor is tax responsiveness to profitability and domestic investment intensified by more open capital markets. To the contrary, analyses indicate that business taxation has become subject to new ‘market conforming’ policy rules that developed in tandem with liberalization of markets. These new policy orientations reduce the economic management roles of business taxation while leaving the revenue-generating roles intact. In conclusion, I discuss the implications of the findings for questions concerning the structural power of internationally mobile capital, redistributive policies, and the autonomy of democratically elected governments in a global economy

Capital market · Economics · Globalization · Market economy · Corporate Taxation and Avoidance · Finance · Local Government Finance and Decentralization · Taxation and Compliance Studies

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Unique citing works161
Citations per year6,19
Citation span2000 - 2025 (26)
Citation velocityrecent
Highly citedYes
Citation typesNeutral: 158
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