European taxation during the crisis: Does politics matter?
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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in: Journal of Public Policy, Jahrgang 32, Nr. 3, 12.2012, S. 207-230.
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
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RIS
TY - JOUR
T1 - European taxation during the crisis
T2 - Does politics matter?
AU - Lierse, Hanna
PY - 2012/12
Y1 - 2012/12
N2 - With the outbreak of the financial crisis in 2008, European governments extensively intervened to avert a severe economic recession. Taxation is a crucial instrument to achieve such economic objectives, but it also represents a redistributive tool in democratic societies. Generally, left-wing parties are more supportive of progressive taxes and redistribution than right-wing governments. As a crisis response, one could assume that European governments, especially social-democratic ones, reinforced a redistributive stance to compensate for the substantial amounts of public money used to bail out financial institutions. Based on the tax reforms introduced between 2008 and 2010, the paper explores the tax strategies adopted by European governments. The findings do not reveal a direct effect of party politics on taxation but rather show that pressures from the capital markets significantly restrained governments' policy capacities to act.
AB - With the outbreak of the financial crisis in 2008, European governments extensively intervened to avert a severe economic recession. Taxation is a crucial instrument to achieve such economic objectives, but it also represents a redistributive tool in democratic societies. Generally, left-wing parties are more supportive of progressive taxes and redistribution than right-wing governments. As a crisis response, one could assume that European governments, especially social-democratic ones, reinforced a redistributive stance to compensate for the substantial amounts of public money used to bail out financial institutions. Based on the tax reforms introduced between 2008 and 2010, the paper explores the tax strategies adopted by European governments. The findings do not reveal a direct effect of party politics on taxation but rather show that pressures from the capital markets significantly restrained governments' policy capacities to act.
KW - Crisis
KW - European Union
KW - fiscal stress
KW - political parties
KW - tax policy
KW - Sustainability sciences, Management & Economics
UR - http://www.scopus.com/inward/record.url?scp=84868628359&partnerID=8YFLogxK
U2 - 10.1017/S0143814X12000116
DO - 10.1017/S0143814X12000116
M3 - Journal articles
AN - SCOPUS:84868628359
VL - 32
SP - 207
EP - 230
JO - Journal of Public Policy
JF - Journal of Public Policy
SN - 0143-814X
IS - 3
ER -