Following a theoretical prologue that seeks to define and critically understand the moral logics that support head, proportionate and progressive taxation, I examine the presence of each of these taxing options in Jewish and Christian thinking. Beginning with the Hebrew Bible this examination proceeds to the texts and practices of classical Judaism, the Christian New Testament, and the later Jewish, Roman Catholic, and Protestant teachings that derive from these key textual resources. I conclude that while there are significant (...) differences within and between these traditions, and while each type of taxation has a presence, the advocacy of progressive taxation as a means of serving the least-off members of society and promoting social equality and opportunity is a leitmotif of the biblically informed religious traditions. (shrink)

Midcentury America was governed from the center, a bipartisan consensus of politicians and public opinion that supported government spending on education, the construction of a vast network of interstate highways, healthcare for senior citizens, and environmental protection. These projects were paid for by a steeply progressive tax code, with a top tax rate at one point during the Republican Eisenhower administration of 91 percent. Today, a similar agenda of government action would be portrayed as dangerously left wing. At the (...) same time, radically anti-government and anti-tax opinions are considered part of the mainstream. In _Take Back the Center_, Peter Wenz makes the case for a sane, reality-based politics that reclaims the center for progressive policies. The key, he argues, is taxing the wealthy at higher rates. The tax rate for the wealthiest Americans has declined from the mid-twentieth-century high of 91 percent to a twenty-first-century low of 36 percent--even as social programs are gutted and the gap betweeen rich and poor widens dramatically. Ever since Ronald Reagan famously declared that government was the problem and not the solution, conservatives have had an all-purpose answer to any question: smaller government and lower taxes. Wenz offers an impassioned counterargument. He explains the justice of raising the top tax rates significantly, making a case for less income inequality, and he offers suggestions for how to spend the increased tax revenues: K-12 education, tuition relief, transportation and energy infrastructure, and universal health care. Armed with Wenz's evidence-driven arguments, progressives can position themselves where they belong: in the mainstream of American politics and at the center of American political conversations, helping their country address a precipitous decline in equality and quality of life. (shrink)

The Financial Crisis in Europe puts pressure on welfare states and its tax systems as well as on considerations of social justice. In this paper, we would like to explore the status of the idea of progressive taxation and its justification (especially the ‘ability-to-pay’ principle) in times of a financial crisis. We will discuss it within a social justice framework following David Miller—using the principles of (i) need, (ii) merit, and (iii) equality. We will conclude that progressive (...) taxation can be justified in the light of these three principles, even more so in the situation of a financial crisis that undermines decent living conditions for millions. The principle of need has to be given priority even if this move violates the principles of equality and desert. (shrink)

Progressive taxation has historically been discussed primarily in the context of developed, Western nations. This Article considers its application in two developing, nonwestern economies, emphasizing the differences in political, economic, and cultural contexts and their effect on the progressivity equation. In India these differences include long-standing attitudes, such as the Hindu tradition’s historic ambivalence towards utilitarian arguments, and shorter-term institutional arrangements, such as the division of power within India’s federal system and the tax exemption for agricultural income. In (...) China they include the legacy of Marxism as well as a more long-standing tendency to resolve legal and policy issues based on notions of communal rather than individual welfare. Both countries have limited administrative resources and a relatively small middle class, so that the income tax remains a relatively small albeit growing source of national revenues. In this Article I consider the impact of these factors, and conclude by asking whether a similar "tax life cycle" will apply to both countries or political and cultural differences will result in divergent tax patterns. Furthermore I also evaluate the progressivity problem as a case study in comparative taxation and assess the need to develop a more sophisticated methodology for dealing with institutional, attitudinal, and other cultural differences. (shrink)

Taxation policy is driven by many factors, including public opinion, but little research has examined the strength and stability of the public’s taxation preferences. This paper demonstrates one way in which preferences for progressiveness depend on the framing of the question asked. Participants indicated how they would share a fixed tax burden between two individuals who earned different amounts of money, either by adjusting the amount of tax paid by the two individuals, or by adjusting the amount of (...) post-tax income retained. The units in which tax was described — amount of money or percentage tax rate — were manipulated orthogonally. There was a strong metric effect: Participants favored progressiveness more when tax was described as a percentage rather than amount. However, there was also a clear interaction: for amounts, participants favored progressiveness significantly more when considering post-tax money retained rather than tax paid; for percentages, no such effect was found. (shrink)

The need to use green taxes to protect the environment is urgent, particularly because of climate change, and can be justified via sound deontological and consequence-based arguments. One very influential criticism of such taxes, however, claims that they disproportionately burden relatively poor individuals who tend to contribute to environmental problems far less than wealthier persons. Critics can also object that because of the link between economic inequality and environmental destruction it is preferable to adopt environmental measures that impede rather than (...) accelerate the growth of inequality. Defusing these criticisms, the article argues that various types of green fiscal reform can both avoid disproportionally burdening those who pollute least and reduce the economic inequalities that income taxes leave behind, and slow down the collectively self-defeating consumption arms race that currently besets so many affluent societies. Global progressive environmental taxation is also a possibility, and even easier to justify. (shrink)

Taxation is more than one thing. Taxes can be levied in various ways on various things, with varying effects on a culture and an economy, and raising different challenges of justification.

The following essay analyzes the arguments made by the principal academic proponent of income taxation, Columbia University economist E. R. A Seligman, after it was found to be unconstitutional in 1894. Seligman thought that the prevalent theory of just taxation, that it should be based on a natural right to one’s person and property, was wrong. The principal American philosophical proponent of this natural rights-based approach to taxation was the late Brown University philosopher and economist, Francis Wayland. (...) The essay analyzes the flaws in Seligman’s contention that there are no natural rights and, therefore, no natural property rights, so that taxation could not be justified by the benefits received for the protection of such rights. Instead, he claimed taxation should rest upon a person’s financial capacity. Since that capacity would be most accurately measured by net worth, we would have expected Seligman to endorse a proportionately assessed net worth tax (which was commonly used by the states in the nineteenth century). Alternatively, he argued for an income tax progressively assessed. This essay argues that since income is only a portion of financial capacity, his argument fails. (shrink)

The term ‘predistribution’ draws attention to the need for policies and institutions that are designed to improve the position of the least advantaged members of society by generating a fairer distribution of opportunities and benefits from the operation of the free market system, with less reliance on redistributive tax-and-transfer mechanisms. Although the idea of progressive predistribution has only recently begun to attract the attention of politicians and commentators in the mainstream media, there is an older and more philosophically grounded (...) predistributive approach that goes back to the idea of the property-owning democracy proposed by Economist James Meade and further developed by liberal political philosopher John Rawls. In this article, I argue that neither the Meadeian/Rawlsian POD model, nor the more recent analysis of the idea of progressive predistribution, provide a clear and convincing account of the distinction between predistributive and redistributive mechanisms. I then argue that a more promising account of this distinction is provided by the idea of the socialization of economic rent through taxation of the rental value of land, and that there are good reasons to think that a shift in the burden of taxation away from production and employment and on to the rental value of land might turn out to be both more genuinely predistributive and more effectively progressive than other possible predistributive mechanisms that have recently been proposed, most notably the aggressive taxation of private inheritances as a means to broaden the distribution of privately owned capital and productive property. (shrink)

In a regressive tax system, lower-income taxpayers pay larger percentages of their incomes in taxes compared to higher-income taxpayers. Although most policymakers and citizens view regressive taxation as generally unfair and unethical, the U.S. tax system taxes wage, salary, and self-employment income in a manner that deliberately subjects lower-income taxpayers to marginal tax rates that are greater than those imposed on higher-income taxpayers. As a result, some lower-income taxpayers pay a larger percentage of their income in taxes than higher-income (...) taxpayers. In this essay, we argue that this regressiveness in the taxation of salaried income is unfair and unethical. We then evaluate President Obama’s social security plan, which would retain most of the current tax system’s regressive structure. Finally, we offer two simple alternative proposals that are non-regressive, and thus more fair and ethical approaches to the taxation of salaried income. (shrink)

The traditional view of tax holds that consumption taxes fail tax the yield to capital, whereas income taxes do, leading to John Stuart Mill's criticism of the income tax as a "double tax" on wealth that is saved. A better analytic understanding illustrates that there are two types of consumption taxes. A prepaid consumption or (equivalently) wage tax indeed ignores the yield to capital. But a consistent progressive postpaid consumption tax gets at such yield, at the individual level, when (...) but only when the returns to capital are used to elevate lifestyles in material terms. Such a tax allows "ordinary" savings that move around labor earnings, in constant dollar terms, to different periods of an individual's life, such as times of retirement or heightened medical or educational needs. Because a progressive postpaid consumption tax falls on the yield to capital at the right time-when its use at the individual level becomes manifest-all other taxes on capital, such as capital gains, gift and estate, and corporate income taxes, can and should be repealed, in the name of fairness. Footnotesa I thank the editors, my research assistants Alex Baskin and Nina Kang, and the other contributors to this volume for their helpful comments. (shrink)

Robert Nozick's book is a major event in contemporary political philosophy. There has, in recent years, been no sustained and competently argued challenge to the prevailing conceptions of social justice and the role of the state. Political philosophers have tended to assume without argument that justice demands an extensive redistribution of wealth in the direction of equality; and that it is a legitimate function of the state to bring about this redistribution by coercive means like progressive taxation. These (...) assumptions may be correct; but after Anarchy, State, and Utopia they will need to be defended and argued for instead of being taken for granted. (shrink)

Traditional welfare states were based on passive solidarity. Able bodied, healthy minded citizens paid taxes and social premiums, usually according to a progressive taxation logic following the ability to pay principle. Elderly, fragile, weak, unhealthy and disabled citizens were taken care of in institutions, usually in quiet parts of the country. During the nineteen eighties and nineties of the twentieth century, ideas changed. Professionals, patients and policy makers felt that it would be better for the weak and fragile (...) to live in mainstream society, rather than be taken care of in institutions outside society. This might be cheaper too. Hence policy measures were taken to accomplish deinstitutionalization. This article discusses the implications of deinstitutionalization for distributive justice. It is argued that the weakest among the weak and fragile stand to lose from this operation. For able bodied citizens deinstitutionalization entails a move from passive to active solidarity. Rather than just pay taxes they have to actively care for and help the needy themselves. The move from passive to active solidarity tends to take advantage of benevolent citizens and burden the socioeconomically disadvantaged. This may be a reason to reconsider the policy move toward deinstitutionalization. (shrink)

The only contemporary moral problems text to focus directly on the ethics of current, divisive political issues, Ethics, Left and Right features newly commissioned essays on twenty contentious debates, written expressly with undergraduate students in mind. It offers two position pieces on each issue--one left-leaning, one right--followed by a reply from each author, giving you and your students the opportunity to engage in in-depth discussions of serious issues. The essays cover compelling topics including whether we should have an "America First" (...) approach to policy, whether it's okay to have religious tests for immigration, the merits of political correctness, the ethics of voting, whether progressive taxation is legitimate, and what to make of accusations of privilege. Case studies at the end of every main contribution encourage students to examine related problems and/or delve deeper into the current issue. (shrink)

The issue of interpersonal comparisons of utility is about the possibility (or not) of comparing the utility or welfare or the mental states in general, of different individuals. Embedded in the conceptual framework of utilitarianism, interpersonal comparisons were admissible in economics as part of the theoretical justification of welfare policies until the first decades of the twentieth century. Under the strong influence of the scientific philosophy of positivism as reflected in the works of early neoclassical economists and as epitomized by (...) Lionel Robbins, utility comparisons were subsequently rejected as a value judgement. Robbins’ methodological stance is still prevalent among mainstream economists. Despite the explicit rejection of comparability by the majority of economists, interpersonal comparisons are necessary for many key policy issues, such as progressive taxation, social welfare policies, GDP-based welfare comparisons, cost–benefit analysis, and public goods provision. In this paper, the case of interpersonal utility comparisons is discussed as an illustrative example of the usefulness of the study of the role of value judgements, and generally of the interrelationship between ethics and economics. It is argued that the current tension between theory and policy practice might be resolved through the efforts of prominent economists and philosophers to challenge positivism, and especially its problematic treatment of value judgements and of ethical assumptions in general. The discussion also provides more strength to the view that policy makers and their economic advisers cannot avoid ethical questions in their analysis of the workings of the economic system. (shrink)

Cohen endorses the coercive taxation of the talented at a progressive rate for the sake of realizing equality. By contrast, he denies that it is legitimate for the state to engage in the 'Stalinist forcing' of people into one or another line of work in order to bring about a more egalitarian society. He rejects such occupational conscription on grounds of the invasiveness of the gathering and acting upon information regarding people's preferences for different types of work that (...) would be required to implement such a policy. More precisely, Cohen maintains that the presence versus the absence of such intrusion explains why such Stalinist forcing of the talented is unacceptable whereas the progressive taxation of their income is legitimate. I argue that Cohen's appeal to invasiveness does not adequately capture the moral repugnance of the state's conscripting people into work at a given occupation. I propose that a right to self-ownership, and that which explains such a right, provides a better explanation than Cohen's of why Stalinist forcing is objectionable, whereas progressive taxation is not. 1. (shrink)

In the final parts of Piketty’s Capital and Ideology, he presents his vision for a just and more equal society. This vision marks an alternative to contemporary societies, and differs radically both from the planned Soviet economies and from social democratic welfare states. In his sketch of this vision, Piketty provides a principled account of how such a society would look and how it would modify the current status of private property through co-managed enterprises and the creation of temporary ownership (...) models. He also sets out two principles for when inequalities are just. The first principle permits inequalities that are beneficial to the worst-off, while the second permits inequalities that reflect differences in people’s choices and ambitions. This article identifies a tension between Piketty’s two inequality-permitting principles. It also argues that the procedural limits on how decisions are made within the enterprises of participatory socialism might create inequalities not permitted by the guiding distributive principles of participatory socialism. This tension points to the need for either further changes in firm structure and ownership, an even more progressive taxation scheme, or an egalitarian ethos reflected in citizens’ choices in their everyday lives under participatory socialism. (shrink)

This paper discusses Adam Smith's views of social justice. It first describes Smith's optimistic view of markets, for example with regard to the absence of negative externalities, which implies that he considered certain normative problems to be the exception rather than the rule. Then, Smith's views on redistribution are discussed: although he is sympathetic to progressive taxation, his main focus remains on free markets, which can partly be explained by his distrust of politicians. If one takes a closer (...) look as Smith's views of markets, however, it turns out that one of the reasons why he endorses them is their distributive features. He saw them as an antidote to the inequalities of the feudal age, offering all individuals an opportunity to work their way up to a decent standard of living and leading to more equality in the long run. Thus, Smith's account, while out-dated in certain ways, can serve as an inspiration for thinking about distributive justice not only as a question of redistributive taxation but also as a question of the institutional design of markets. (shrink)

Over its entire life, the Internal Revenue Code (like other tax systems) has never tried to tax economic income as such, because of the administrative and liquidity problems that arise from taxing any combination of values consumed and from appreciation (or depreciation) of capital stocks. Instead, the common practice limits tax occasions to a realization of income from sale or other disposition of property. Even then, if the proceeds of the transaction are not cash or marketable securities, as with many (...) corporation reorganizations, taxation is deferred until these assets are converted in cash or marketable securities.Any effort to eliminate these twin filters by taxing income—and income regardless of realization—will overburden government agencies and private taxpayers, while reducing economic activity. A wealth tax scores even worse by these welfare measures, creating massive problems of evasion and enforcement that will reduce capital formation across the board in the effort to transfer wealth from the ultra-rich to everyone else. A simple tax structure with affordable rates is the only path to economic prosperity. (shrink)

Thomas Piketty'sCapital in the Twenty-First Centuryis a tour de force—a compelling and accessible read that presents an eloquent and convincing warning about the future of capitalism. Capitalism, Piketty argues, suffers from an inherent tendency to generate an explosive spiral of increasing inequality of wealth and income. This inegalitarian dynamic of capitalism is not due to textbook failures of capitalist markets (for example, natural monopolies) or failures of economic institutions (such as the failure to regulate these monopolies), but to the way (...) capitalism fundamentally works. Unless the spiral is controlled by far more progressive taxation than is now the norm, the political fallout could undermine the viability of the successful “social state” (p. 471) in the advanced economies, putting the democratic state itself at risk. (shrink)

This chapter identifies two types of moral dilemma. The first type is described as ethical clash: whether affirmative action is just or unjust, for example, or whether withholding information from an inquisitive relative is honest or dishonest. In these cases the dilemma takes the form of conflict between an ethical predicate and its complement. The second type of moral dilemma is ethical overlap. Instead of a clash between a single predicate and its complement, here two or more predicates apply. Dilemmas (...) associated with white lies, for example, often depart from the recognition that such acts are both dishonest and avoid inflicting pain. Similarly, social dilemmas over progressive taxation may arise despite agreement that progressive systems both decrease liberty and increase equality. Which predicate should take precedence? Strategies for dealing with both types of dilemma are proposed. (shrink)

It is widely acknowledged that a fair tax system is one of the most crucial foundations for any country to pursue stable development and human values. So how does a country accomplish tax fairness? This article argues that war finance and domestic economic inequality are two critical conditions. Historically, wars usually create opportunities for countries to enact progressive tax reforms. However, countries’ war finance choices are conditioned by domestic economic inequality. When inequality is low, the political leadership is more (...) likely to secure a consensus of ‘equality of fiscal sacrifice’ between domestic wealthy elites and ordinary citizens. As a result, the leadership can more successfully enact progressive taxation, money creation and non-military spending cuts to pay for the war. Conversely, when inequality is high, the societal redistributive conflict could be more serious. Unable to strike a bargain of fiscal sacrifices without severe social instability, the leadership is expected to resort to a debt-financing strategy, which stifles tax progressivity and fairness. This article compares the United States’ war finance in the Korean and Vietnam Wars and finds supportive evidence. This article has important implications for the pursuits of tax fairness, democratic accountability, and the prospect for peace. (shrink)

In Social Life and Moral Judgment, author and philosopher Antony Flew examines the social problems induced by the mature welfare state. Welfare states make ever-increasing financial demands on their citizenry, yet the evidence clearly supports that such demands are not sustainable. In this superlative collection of thematic essays, Flew investigates and explains why this is so, and calls for a return to individual responsibility. The first essay establishes the philosophical basis for his argument. "Is Human Sociobiology Possible?" answers its titular (...) question in the negative, asserting that we are all members of a peculiar type of creature that can, and therefore must, be responsible for whatever choices between various courses of action or inaction that are open to us as individuals. In other essays, Flew shows how state welfare systems inevitably corrupt and demoralize their citizens by encouraging ever-more people to apply for welfare entitlements and reducing the incentives to avoid or escape the conditions warranting those entitlements. He investigates the origins of this new kind of welfare entitlement, and shows how very different what politicians and public sector employees produce is from what these people claim to be producing. Flew shows that the drive for "social" justice appears to require that the justly acquired income and wealth of all citizens should be progressively taxed away or supplemented by the state so that the eventual result is more, though never perfect, equality. This objective, he asserts, must be radically distinguished from old-fashioned, without prefix or suffix, justice. It was this type of justice Adam Smith referred to when he famously said that it is a virtue "of which the observance is not left to the freedom of our wills" but "which may be extorted by force." Flew question the aims of those who would discredit wealth creators and wealth-creating investment, showing that these are the same people who promote the rising "progressive" taxation needed to finance expenditure in the growing welfare state. Social Life and Moral Judgment is a timely critique, one that will be appreciated at a point in history when governments on both sides of the Atlantic have begun to describe spending on state health, social, education, and welfare services as investments, instead of mechanisms to achieve social justice. (shrink)

Distributive justice on the income and on the service aspects is the most vexing modern day problem for the creation and maintenance of an all inclusive health care system. A pervasive problem of all current schemes is the lack of effective cost control, which continues to result in increasing burdens for all public and private stakeholders. This proposal posits that the responsibility and financial obligation to achieve an ideal outcome of equal and affordable access and benefits for all citizens is (...) misplaced. The Good Samaritan demonstrated basic ethical principles, which are revisited, elaborated and integrated into a new approach to health care. The participants are limited to individual contributors and beneficiaries and organized as a citizen carried, closed, independent, and self-sufficient self-governing cooperative for their own and the benefit of a minority of disadvantaged health care consumers. The government assumes oversight, provides arbitration, enforces democratic decision making, a scheme of progressive taxation, a separate and transparent accounting system, and a balance between income and reinvestment in health care. The results are a fair distribution of cost, its effective control, and increased individual motivation to take on responsibility for personal health as a private good and a sharpened focus towards community health. At the sociopolitical level the government as well as employers are released from the inappropriate burden of catering to individual health. (shrink)

In this article I maintain that a progressive and leftist carbon tax should be revenue-neutral through a dual policy package: first, it should use some revenues to offset price increases for the poor and middle classes; second, it should use the remaining part of revenues to lower taxes on labour income (both employed and self-employed income) for those below a middle-income threshold. I will briefly examine three reasons why such a revenue-neutral and dual-package carbon tax (RN-DP-CT) could (and should) (...) become central in the political agenda of the European Left – even though much of what I will suggest can reasonably hold also with respect to other countries. First, the tax wage on labour in the euro area is one of the highest in the world. Second, the revenue-neutral and dual policy package carbon tax will tax more capital that yields income without a proportional increase in labour demand, rather than capital that creates new job opportunities. Third, we live in societies that are highly unequal, hence I see no moral reason why a carbon tax reform should not aim, among other things, to take wealth away from the richest. (shrink)

Exploitation and Economic Justice in the Liberal Capitalist State offers the first new, liberal theory of economic justice to appear in more than 30 years. The theory presented is designed to offer an alternative to the most popular liberal egalitarian theories of today and aims to be acceptable to both right and left libertarians too.

Ethical conduct in practice has been increasingly recognised as vital to the accountancy profession following the collapse of Andersen. The foundational principles underpinning accountancy ethics receive relatively uniform recognition worldwide so that this paper concentrates on exploring how to introduce these concepts into established courses at undergraduate level. Historically, the teaching of accounting techniques has been isolated from the personal assimilation of accountancy's ethical values by students. Alternative approaches are considered, of a dedicated 'capstone' ethical course or through more (...) class='Hi'>progressive integration within existing parts of an established curriculum. An opportunistic example of the latter is then described with the rationale, potential benefits, student reactions and practical difficulties assessed. Overall, the paper explains why, alongside technical skills, their personal development requires undergraduates to develop how to apply for themselves given professional values. It contributes suggestions as to methodologies, content and material for short modules within financial reporting, taxation, auditing and social/environmental accountancy courses while reflecting on the limitations and potential of their use. (shrink)

Prioritarianism is an ethical theory that gives extra weight to the well-being of the worse off. In contrast, dominant policy-evaluation methodologies, such as benefit-cost analysis, cost-effectiveness analysis, and utilitarianism, ignore or downplay issues of fair distribution. Based on a research group founded by the editors, this important book is the first to show how prioritarianism can be used to assess governmental policies and evaluate societal conditions. This book uses prioritarianism as a methodology to evaluate governmental policy across a variety of (...) policy domains: taxation, health policy, risk regulation, education, climate policy, and the COVID-19 pandemic. It is also the first to demonstrate how prioritarianism improves on GDP as an indicator of a society's progress over time. Edited by two senior figures in the field with contributions from some of the world's leading economists, this volume bridges the gap from the theory of prioritarianism to its practical application. (shrink)

Centre for Applied Philosophy and Public Ethics, The Australian National University, LPO Box 8260, ANU, Canberra ACT 2601, Australia. Email: michael.selgelid{at}anu.edu.au ' + u + '@ ' + d + ' '/ /- ->. Home page: http: //www.cappe.edu.au/staff/michael-selgelid.htmThis article advocates the development of a moderate pluralist theory of political philosophy that recognizes that utility, liberty and equality are legitimate, independent social values and that none should have absolute priority over the others. Inter alia, such a theory would provide a principled (...) means for striking a balance, or making trade-offs, between these values in cases of conflict. Recent developments in public health ethics have made progress in thinking about how to make trade-offs between liberty and utility in particular. While public health ethicists often claim that the least restrictive alternative should be used to achieve the public health goal in question, I argue that a plausible but under-recognized idea is that the least restrictive alternative might sometimes involve improvement of global health via redistributive taxation—i.e., rather than coercive social distancing measures. I conclude by demonstrating that the proportionality principle leaves open the question of when exactly utility outweighs liberty or vice versa—and I argue that, rather than speaking about the morality of liberty-infringing public health interventions in categorical/binary terms, it would be more fruitful and realistic to think and speak about the degree to which a liberty-infringing public health intervention is morally appropriate. CiteULike Connotea Del.icio.us What's this? (shrink)

Natural resources, especially land, play an important role in many economic problems society faces today, including the climate crisis, housing shortages and severe inequality. Yet, land has been either entirely neglected or seriously misunderstood by contemporary theorists of distributive justice. I aim to correct that in this paper. In his theory of original acquisition, Locke did not carefully distinguish between the value of natural resources and the value that we add by laboring upon them. This oversight led him to the (...) mistaken conclusion that labor mixing gives the laborer an entitlement to both the improvement and the resource. I explain how Locke's false belief that the proviso was satisfied in his time was the fundamental cause of this error. -/- Instead, we should think, following Henry George, that the community is entitled to the economic value of natural resources, because the community created the value of resources, not the individual improver. I discuss an argument from George's "Progress and Poverty" that selfownership is actually inconsistent with (rather than the ground for, as Locke thought) private appropriation of natural resources. I present George's argument that private appropriation of natural resources is akin to forced labor, which is remarkably similar to Nozick's infamous argument that taxation is akin to forced labor. -/- I then develop my own view of original acquisition, inspired by George. The selfownership of improvers gives them an entitlement to improvements that they generate. But the self-ownership of everyone else precludes an entitlement to natural resources value. Natural resource rents should not be enjoyed only by those who improve the resource, but rather, by all community members in proportion to the share of demand for natural resources they are responsible for. In the last section, I consider and refute an objection from the luck egalitarian claiming that natural talents are relevantly similar to land. (shrink)

Tax compliance has been extensively researched. Yet, the classic question ‘why do people pay taxes?’ remains unanswered. In Jordan, tax evasion is widespread. The state and citizens have been trapped in a continuous hide-and-seek game, which has taken the form of a virtuous cycle. This paper investigates tax evasion along with the most noticeable features of the Jordanian tax system. It also highlights how the virtuous cycle of tax evasion has been established and what could possibly be a way out (...) of it. We argue that sociocultural values are the most prominent cause for tax evasion. That is, the procedures of state formation and functionality in Jordan have created mutual distrust between the state and its citizens. Having been raised in a community characterized by deep distrust, tax evasion is no longer considered immoral by substantial numbers of the Jordanian population. We argue that successive governments need to create a high-trust-based culture and formulate strategies that serve to acquire normative ethical values in order to enhance voluntary compliance. The way to accomplish this necessity is through enforcing the state’s transparency and accountability. The taxation system needs to concentrate on income tax rather than raise tax rates on essential commodities to collect substantial tax revenues. Thus, further reform of the taxation system along with a reduction in tax incentives need to be considered. Moreover, lowering the exceptionally high personal income tax threshold would bring Jordan in line with its peers, expand the base, and introduce more progressivity. There would also be a scope to introduce a minimum tax based on sales as a tool to address tax evasion. (shrink)

Nine years before the fall of Constantinople, in 1444, cardinal Bessarion in his third and last letter addressed to Constantine Palaeologus, Despot of Mystra, expressed his deep concern about the economic, political, cultural, social and moral crisis, maintaining that the multidimensional crisis would inevitably lead to Byzantium’s decline. Bessarion stresses that the aristocracy’s biased policy, the burdensome taxation, the low level of business activity, the complete lack of technological advancements and the deficient education system not only shaped the Peloponnesian (...) state but also transformed the once brave, conscientious and studious Greeks into a cowardly, indolent and ignorant people. Realizing that the constitution of Greek society and the behavior of its citizens are impediments to modernization and to cultural progress, Bessarion proposes a series of reforms based on a revival of Ancient Greek culture and on technological advances of West that would lead to a well-governed, self-sufficient and independent Greek state. On 23 April 2010, 566 years after Bessarion’s letter, the Greek government requested financial assistance from the European Support Mechanism in order to avert the probability of default in Greece. The fiscal deficit, the swelling sovereign debt and the global financial recession shape Greece in crisis. The aim of this paper is to give an interpretative presentation of Bessarion’s letter with reference to modern Greece; to analyze the causes of the Byzantine Empire’s decline and the recommended reforms in comparison to the causes of the financial crisis in Greece and the implementation of austerity measures. I will prove that nowadays modern Greeks face the same problems with the Greeks of Peloponnese such as political corruption, administrative incompetence, excessive taxation, economic impoverishment, class inequality, unemployment, reduced business activity and inability to exploit natural resources. In this sense, I will show that the identity crisis of modern Hellenism was first cultivated and formed gradually from the Renaissance to modern Greece. (shrink)

Virtually all liberal egalitarian advocates of redistributive taxation support an income tax, believing that consumption taxes fail to reach capital and its yield. But this is not true under progressive rates. There are two forms of consumption tax, prepaid and postpaid. A consistent progressive postpaid consumption tax reaches the yield to capital in just those cases in which ordinary moral intuitions want it to be reached: when savings are used to finance a "better," more expensive, lifestyle. Such (...) a tax stands between an income tax, which double taxes all savings, come what may, and a prepaid consumption tax, which never taxes savings. It is the last, best hope for some semblance of redistribution via tax on earth. (shrink)

The rapid development of complex income taxation and welfare systems in the 20th century may give the impression that progressive wealth redistribution systems are uniquely modern. However, religious systems provided similar mechanisms for addressing economic injustice and poverty alleviation centuries earlier. Zakat is the obligation of almsgiving and is the third pillar of Islam--a requirement for all believers. In the early development of the Islamic community, zakat was collected as a tax by the state and the funds were (...) distributed to a defined set of needy groups. As a theoretical matter, there are three insights that make zakat an especially relevant subject for modern legal scholars. First, zakat is an example of a modest wealth tax combined with an income tax that may be illustrative in the discourse regarding wealth taxes. Second, the jurisprudence of zakat supports the ethical conclusions of scholars who contend that property rights are attached to post rather than pre-tax income. Third, to the extent that zakat is considered a principal source of revenue for public programs, it might imply a limited role for government, focusing on equitable distribution of goods. This paper begins with a thorough evaluation and synthesis of the traditional Islamic jurisprudence related to zakat. The next section identifies three broad approaches to zakat adopted by modern Muslim states, with particular emphasis on ways that zakat is institutionalized legally. This is followed by an empirical analysis of the correlation of the approaches to zakat with individual income and wealth stratification. The article concludes with observations and policy recommendations related to zakat and broader legal theory based on the earlier qualitative analysis and empirical findings. (shrink)

There are three distinct forces that conspire to produce a great deal of economic misery. We can refer to them, for convenience, as misfortune, unfairness, and improvidence. Political philosophers have often shown an interest in one or another of these, but seldom all three. Furthermore, those who do acknowledge all three have often felt driven to collapse them into one root cause of inequality. My goal in this essay will be to argue that the three are independent of one another, (...) but more importantly, that they each require distinct remedies. This is important for egalitarians because it defeats any attempt to develop a “one-size-fits-all” policy aimed at creating a more equal society. This analysis helps us to understand several of the tensions that arise in our attempts to combat inequality that are often obscured by an overemphasis on the power of redistributive taxation as well as generalized inattention to the way that successful welfare states achieve meaningful progress in promoting greater equality. (shrink)

Climate justice demands polluters to take responsibility for both present and future harm caused by past GHG emissions and for future harm caused by future GHG emissions. One problem with this is double climate taxation: people living in historical polluting countries must both shoulder the burden of an effective and inclusive climate transition and repay the climate debt incurred by their predecessors. Although double climate taxation might be defensible on normative grounds, it risks making climate justice politically infeasible. (...) I therefore maintain that global climate justice should focus on future, rather than past, climate harms. The forward-looking polluter pays principle (FL-PPP) can ensure both a cost-effective climate transition and a fair distribution of the climate burden, provided it is applied as follows: i) each country must introduce a carbon price calibrated to the global social cost of carbon; ii) each country must transfer part of carbon revenues collected at the country level to an international fund; iii) global carbon revenues must be redistributed on the basis of the country-level social cost of carbon. The FL-PPP burden can be made more progressive, moreover, if the formula for allocating global carbon revenues is adjusted through two coefficients, one consumption-based and one priority-sensitive. (shrink)

This article focuses on the history of the customs laboratories in the United States between the 1870s and the 1930s, focusing especially on the decades up to World War I. It pays attention to the various dimensions of these laboratories, in particular the context of their creation. The first customs laboratory was established in New York in 1878, and over the subsequent years, similar laboratories were set up across the country. The evolution of this network was influenced by factors such (...) as the increasing specialization of these spaces, their geographic distribution, and changes in their organization and scope. The article also explores the types of imported merchandise analyzed in these labs; the roles of their staff, especially customs chemists, both within and outside these laboratories; their impact on the circulation of goods and in generating revenue from taxation; and the main challenges faced by customs chemists in adapting and standardizing their work. After discussing the necessity of customs laboratories in the United States, the article examines their progressive specialization, with a detailed study of the customs laboratory in New York. This laboratory was the largest and most significant due to its location and longevity. Finally, the paper considers the relationship between customs labs and the law, and how these spaces adapted to new challenges during the first third of the twentieth century. (shrink)

This chapter examines Ronald Dworkin’s treatment of inherited wealth. Dworkin’s contentions are that the goal of restricting bequests is to prevent the formation of hierarchies of social class, and this goal can be pursued through a progressive estate tax. This chapter seeks to support Dworkin’s commitment to the diagnostic significance of class injustice, but finds problems with his attempt to defend progressive estate taxation as a model of hypothetical insurance choices. After identifying various difficulties with Dworkin’s actual (...) approach, the paper ends on a more positive note: Dworkin’s concern to address class hierarchies can be adapted so that an inheritance tax gains support from the various principles that make up the liberty/constraint system in chapter three of Sovereign Virtue, principles which work alongside the envy test and hypothetical insurance approach. (shrink)

On reflecting about the prospects of advancing the egalitarian cause in the United States, John Roemer makes the case for more traditional strategies than the coupon socialism model he advocated in earlier work. First of all, he suggests, an ethos of solidarity must be developed and the super-rich be subjected to higher taxation. This comment assesses this proposal. On the one hand it is discussed whether the ethos of solidarity Roemer calls for in order to counteract the culture of (...) greed among American elites requires nurturing an undesirable culture of envy among the rest of the population. On the other hand it is considered whether the neoclassical principal-agent model—that Roemer believes must be contested in order to popularize a steep progressive income tax—might be one of the more promising tools to restructure the incentives of economic elites and curb casino capitalism. (shrink)

The origins of U.S. corporate taxation are often associated with the 1909 corporate excise tax. Scholars who have investigated the beginnings of this levy have mainly focused on the legislative history of the 1909 corporate tax to argue that it was either an expression of the Progressive Era impulse to regulate large-scale corporations or an attempt to use corporations as remittance devices to collect taxes aimed at wealthy shareholders. This Article broadens the conventional historical accounts of the emergence (...) of American corporate taxation by revisiting the 1909 U.S. corporate tax from a comparative perspective. The aim is to look both below and beyond the American nation-state to determine how and why U.S. state governments and other Western industrialized nations tried to tax corporations at the turn of the twentieth century. This Article investigates a small slice of subnational and transnational comparative examples: corporate tax laws and policies in a few representative nineteenth-century industrializing American states, and in turn-of-the-century England and Germany. Building on the well-known insights of comparative business history, this Article contends that historically-determined political interests, social ideas, and cultural beliefs help explain the American obsession with disciplining large-scale business corporations through the use of nominally punitive tax laws and policies. Comparative-historical analysis shows how differences in the organizational structures of big businesses across place and time have led to variations in political economy that were ultimately expressed in the legal ideas and cultural attitudes toward corporate capitalism. These variations, in turn, shaped the transnational distinctions in corporate tax law and policies. Greater attention to the comparative-historical development of law and political economy may help us understand the stubborn persistence of American corporate taxation, particularly in the face of recent global changes and the relentless economic critiques of the double taxation of corporate income. (shrink)

Bentham and J. S. Mill can be regarded as utilitarian tax-reformers distinguished from political economists who were simply averse to taxation. The purpose of this paper is to elucidate the difference between Bentham's and Mill's tax reform programmes. Bentham proposed the law of escheat and a tax on bankers' and stock dealers' profits, subject to the principle of least sacrifice of enjoyment. He also planned to correct the inequality of the land tax by extending it into a general income (...) tax. Mill proposed an income tax on the basis of the principle of equal sacrifice of enjoyment. He also proposed a progressive inheritance tax and a variable land tax, regarding unearned income as a fit subject for a special tax. Consequently, Mill used Bentham's ideas and tools to take a step towards a more egalitarian programme. (shrink)

This volume examines the evolving reputation of Rousseau as an authority on education in France from the publication of Emile in 1762 to the fall of the Jacobins in 1794. It takes as its focus the centrality of the debate over private and public education. The author argues that what unites Rousseau and the Revolutionaries is their holistic approach, which perceives an organic relationship between the internal constitution of the person as a moral and emotional being and what are normally (...) thought of as external public matters such as politics. Education is, in fact, the key to Rousseau's philosophy and it is also the key to revolutionary change. The Revolutionaries may start by looking at the necessary reform of the monarchy or the taxation system, but as things develop, they realise that if the Revolution is to last, education must be appropriate to it. In this way the Revolutionaries are obliged to consider education as a tool for thinking about the very problem Rousseau had perceived: the connection between the inner self and society and its institutions. The study examines the way in which the early revolutionaries are faced by Rousseau's already established reputation as an authority on private education and how this poses problems for them. Linked too emphatically with individualism and the private sphere, Rousseau represents an ambiguous symbol for those concerned with the reform of public education. Yet, his reputation in the field of child care the developing cult of him as inspiration and symbol of the Revolution make him an almost obligatory reference point for educational reformers. The author's analysis traces the progression of the Revolutionaries' attitudes. The volume demonstrates how the first thirty to thirty-five years of the fortunes of Rousseau's reputation as an educationist have, arguably, more to do with politics than pedagogy. Two major phases of the intermeshing of education and politics around the figure of Rousseau can be seen: the first in the years following the publication of Emile, when the supporters of absolute monarchy show their suspicion of the radical implications of Emile, and the second in mid-Revolution, when the association of Rousseau and his political doctrine spills over into the plans of educational reform. This volume charts the progress of these developments and casts new light on the vexed question of the relationship of Rousseau to the French Revolution. (shrink)

This book brings together recent work analysing the labour market behaviour of agents, particularly with regard to unemployment, job search, and labour supply. It considers the economic and demographic factors involved, and in particular the responsiveness of labour market behaviour to changes in these factors. There has been considerable recent progress in the design of appropriate econometric techniques and models with which to confront labour market theories with available data. The contributions to this volume represent important extensions or applications by (...) some of the foremost researchers in the field, provide tests of the available theories, and draw the consequent conclusions for policy. Subjects covered include unemployment, the duration of unemployment, the effects of insurance, benefits and taxation, youth unemployment, models of labour supply, and female participation. The contributors come from the USA, Canada, UK, France, Sweden, and Denmark. (shrink)

This paper uses a computational framework to analyse the equilibrium dynamics of exploitation and inequality in accumulation economies with heterogeneous labour. A novel index is presented which measures the intensity of exploitation at the individual level and the dynamics of the distribution of exploitation intensity is analysed. Various taxation schemes are analysed which may reduce exploitation or inequalities in income and wealth. It is shown that relatively small taxation rates may have significant cumulative effects on wealth and income (...) inequalities. Further, taxation schemes that eliminate exploitation also reduce disparities in income and wealth but in the presence of heterogeneous skills, do not necessarily eliminate them. The inegalitarian effects of different abilities need to be tackled with a progressive education policy that compensates for unfavourable circumstances. (shrink)

No apology, I imagine, is necessary for the appearance of this translation\nof Marx's "Misere de la Philosophic" On the contrary it is strange\nthat it should not have been published in England before, anu that\nthe translation of his monumental work, the "Capital," tardy as that\nwas, should have yet been made before that of a work which was originally\npublished some twenty years before "Capital" first appeared.\n\n\nIt may be that the translators and editors of the latter work were\nof opinion that in view of (...) the comprehensiveness of "Capital," a\npublication of an English edition of the "Misere de la Philosophic"\nwould be a work of supererogation. Or it may be that they thought\na book so distinctly French—as the "Capital" may be said to be distinctly\nEnglish—and which was, further, exclusively a criticism of a work\nof Proudhon's little known in England—would have slight interest\nfor English readers. On the other hand, the groundwork of the theories\nso fully elaborated in "Capital," apart from its exhaustive analysis\nof the capitalist system of production and distribution, will be\nfound in "Misere." In addition, there are several subjects—notably\nthat of rent—dealt with in this volume which are barely touched upon\nin the single book of " Capital " which has been translated into\nEnglish.\n\n\nMarx's criticism of Proudhon's theory that " the time which is necessary\nto create a commodity indicates exactly its degree of utility," so\nthat " the things of which the production costs the least time are\nthe things which are the most immediately useful," has been matched\nby H. M. Hyndman's crushing refutation of the theory of Final Utility.\nThe subject of rent, too, has been fully dealt with by the latter\nin the same book, " The Economics of Socialism," published, as the\nauthor says, in the hope of furnishing " the rapidly-increasing number\nof students of sociology with a concise and readable statement of\nthe main theories of the scientific school of political economy founded\nby Karl Marx and Friedrich Engels." Neither of these facts, however,\nnecessarily detracts from the value of this older work of Marx's.\nOn the question of rent, after reviewing the Ricardian theory and\nthe many objections which present themselves to that theory, Hyndman\nsays: " It seems, therefore, that a wider definition of the rent\nof land under capitalism is needed than that given by Ricardo, and\nthe following is suggested: — Rent of land is that portion of the\ntotal net revenue which is paid to the landlord for the use of plots\nof land after the average profit on the capital embarked in developing\nsuch land has been deducted." On the question of confiscating rent\nhe says it " would not affect the position of the working portion\nof the community unless the money so obtained were devoted to giving\nthem more amusement, to providing them with better surroundings and\nthe like. ... In fact, the attack upon competitive rents is merely\na capitalist attack. That class sees a considerable income going\noff to a set of people who take no part in the direct exploitation\nof labor; and its representatives are naturally anxious to stop this\nleakage, as they consider it, and to reduce their own taxation for\npublic purposes by appropriating rent to the service of the State.\nThat is all very well for them."\n\n\nOn this point Marx says: " We can understand such economists as Mill,\nCherbulliez, Hilditch and others, demanding that rent should be handed\nover to the State to be used for the remission of taxation. That\nis only the frank expression of the hate which the industrial capitalist\nfeels for the landed proprietor, who appears to him as a useless\nincumbrance, a superfluity in the otherwise harmonious whole of bourgeois\nproduction."\n\n\n" Rent," says Marx, " results from the social relations in which exploitation\nis carried on. It cannot result from the nature, more or less fixed,\nmore or less durable, of land. Rent proceeds from society and not\nfrom the soil."\n\n\nThe criticism of Proudhon's appreciation of gold and silver as the\nfirst manifestation of this theory of " constituted value" should\nbe interesting reading to those admirers of the French Anarchist\nwho yet profess their profound detestation of money and its function.\nSo, too, should his declaration against strikes and combinations\nof workmen. In this we see once more how extremes meet. This declaration\nof Proudhon's would not be out of place in the organ of the Liberty\nand Property Defence League.\n\n\nIn this matter of trade union combination, Marx was scarcely accurate\nin his perception of its development. He clearly did not foresee\nthat the great English trade unions would become fossilised, as it\nwere; and that instead of being a revolutionary force they would\nbecome a reactionary mass, opposing the progress of the mere proletarian\noutside their ranks, as they have done. With the spread of Socialist\nideas among them, however, their exclusive character is being modified,\nand they may even yet take that place in the revolutionary working-class\nmovement which Marx anticipated they would occupy. Given this change\nof attitude, the development must inevitably be along the lines he\npredicted. We are seeing "in face of constantly united capital, the\nmaintenance of the association [becoming] more important and necessary\nfor them than the maintenance of wages," and, further, that the combinations\nof capital are forcing the trade unions to that point where "association\ntakes a political character."\n\n\nIt is scarcely necessary to point out that in this work, written in\n1847, some words have a meaning quite other than that which they\nbear to-day. Thus, for instance, the words "Socialists" and "Socialism,"\nwhere they occur, refer to the utopians—who formulated theories of\na social system independent of the industrial evolution— and to these\ntheories themselves.\n\n\nIn most cases the numerous quotations have been verified and reproduced\nin the original. In some instances, however, they are summaries rather\nthan quotations, and appear ^is translated.\n\n\nA translation jn* necessarily an imperfect presentation of the thoughts,\nideas, and conclusions of the author. In this work I have endeavored\nto adhere as closely as possible to the form and letter, as well\nas the spirit of the original, and to this the indulgent reader is\nasked to ascribe such faults of language as would otherwise merit\nhis censure. (shrink)

‘Marx on tax’ as an effective antidote to inequality is an overlooked theme within his own output, but also for our own time. Marx theorising on tax is seen even by pre-eminent Marxists as an empty box, but Marx and Engels in fact had plenty to say about tax. Their coverage embraces progressive taxes, both on capital and income, a strong preference for direct over indirect taxation, inheritance tax, land-value tax, taxes on financial transactions, and state finances around (...) the world. Tax also provides the battleground for a rare sight of Marx as campaigning activist, in 1848, matched in the same period by close ally Wilhelm Wolff. The tax policies of Marx and Engels have been neglected because they are primarily to be found in their journalism and letters. They are no anachronistic curiosity but perfectly applicable to the income and wealth inequalities of our own era. (shrink)

On reflecting about the prospects of advancing the egalitarian cause in the United States, John Roemer makes the case for more traditional strategies than the coupon socialism model he advocated in earlier work. First of all, he suggests, an ethos of solidarity must be developed and the super-rich be subjected to higher taxation. This comment assesses this proposal. On the one hand it is discussed whether the ethos of solidarity Roemer calls for in order to counteract the culture of (...) greed among American elites requires nurturing an undesirable culture of envy among the rest of the population. On the other hand it is considered whether the neoclassical principal-agent model - that Roemer believes must be contested in order to popularize a steep progressive income tax - might be one of the more promising tools to restructure the incentives of economic elites and curb casino capitalism. (shrink)