TY - JOUR

T1 - Globalization and the societal consensus of wealth tax cuts

AU - Lierse, Hanna

N1 - Publisher Copyright: © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

PY - 2022/5/4

Y1 - 2022/5/4

N2 - Wealth taxes are redistributive policies, which tap into the accumulation of wealth at the top. As the financial burden of these taxes affect a small elite, standard political science arguments suggest that they are popular instruments. Yet, democratic governments have increasingly cut wealth taxes. This paper sheds light on the reasons for their decline. It is the main argument that in the context of financial globalization not only right-wing but also left-wing governments cut wealth taxes as they undermine economic competitiveness, which is in the interest of the whole society. The societal consensus is particularly pronounced under corporatism, where capital and labour establish a reliable agreement not to tax wealth in return for long-term growth and employment. Based on a database for inheritance and net wealth taxes in up to 18 countries since 1970, the findings illustrate the emergence of a societal consensus of wealth tax cuts.

AB - Wealth taxes are redistributive policies, which tap into the accumulation of wealth at the top. As the financial burden of these taxes affect a small elite, standard political science arguments suggest that they are popular instruments. Yet, democratic governments have increasingly cut wealth taxes. This paper sheds light on the reasons for their decline. It is the main argument that in the context of financial globalization not only right-wing but also left-wing governments cut wealth taxes as they undermine economic competitiveness, which is in the interest of the whole society. The societal consensus is particularly pronounced under corporatism, where capital and labour establish a reliable agreement not to tax wealth in return for long-term growth and employment. Based on a database for inheritance and net wealth taxes in up to 18 countries since 1970, the findings illustrate the emergence of a societal consensus of wealth tax cuts.

KW - Globalization

KW - inequality

KW - political parties

KW - social change

KW - taxation

KW - wealth

KW - Sustainability sciences, Management & Economics

UR - http://www.scopus.com/inward/record.url?scp=85119319462&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/37f18d48-b929-3e4c-b993-e314cbddd97d/

U2 - 10.1080/13501763.2021.1992487

DO - 10.1080/13501763.2021.1992487

M3 - Journal articles

AN - SCOPUS:85119319462

VL - 29

SP - 748

EP - 766

JO - Journal of European Public Policy

JF - Journal of European Public Policy

SN - 1350-1763

IS - 5

ER -