The redistributive impact of hypocrisy in international taxation

Why do tax havens, whose attractiveness for foreign investors depends upon financial secrecy, agree to automatically report account data to foreign governments? From a contractualist perspective, their cooperation should be motivated by the expectation of joint gains. Prior to such agreement, however, tax havens expected outflows of foreign capital and reductions in economic activity as likely outcomes. We show that the United States (US) imposed automatic information exchange on these countries without itself participating. The result is a strongly redistributive regime that worsens the economic situation of tax havens. By means of a difference‐in‐differences analysis, we ascertain a substantial and statistically significant negative effect of a US sanction threat on the value of assets held by foreigners in tax havens relative to non‐havens. The effect becomes stronger when the US is included in the non‐haven group. The analysis confirms the US's ability to redistribute financial wealth internationally through organized hypocrisy.     

Capital mobility and the possibilities for international policy coordination

When capital is internationally mobile, small differences in macroeconomic policies generate massive payments imbalances that cannot be managed successfully with the policy tools used during the Bretton Woods era. Monetary and fiscal policy coordination is needed to stabilize the international economy, but is difficult to achieve. This article uses insights from the theoretical literature on international cooperation to account for characteristics of policy coordination in recent years. Examination of the strategic situation helps to explain why governments have rejected proposals for a rules-based regime (e.g., strict multilateral surveillance using quantitative indicators) yet have coordinated policy adjustments on an ad hoc basis in response to crises. A solution to the strategic problem — in which there is one mutually adverse outcome (no adjustment by any government) and a number of Pareto-optimal outcomes preferred by different governments — depends on the exercise of power. Consideration of theories about hegemony and cooperation suggests that the U.S. continues to act as a hegemon in this area, albeit of the coercive rather than benevolent sort. International theories of cooperation, however, neglect the domestic policy making practices and institutions that pose the central problems for international policy coordination.     

American Patriotism, National Identity, and Political Involvement

Researchers disagree over the definition, measurement, and expected political consequences of American patriotism, a situation that is fueled by the absence of a strong theoretical research foundation. We develop and evaluate a new measure of national attachment that is grounded in social identity theory ( Tajfel and Turner 1979 ), drawing on data from three distinct sources: two studies of undergraduate students and the 1996 General Social Survey (GSS). Confirmatory factor analyses provide clear evidence that national identity is distinct from other measures of national attachment including symbolic, constructive, and uncritical patriotism, and nationalism. National identity has a number of other good measurement properties when compared to existing measures: it receives equal endorsement from conservatives and liberals (unlike most other measures which exhibit an ideological bias), develops with time spent in the United States among immigrants, and most importantly is the only measure of national attachment to predict political interest and voter turnout in both student and adult samples, consistent with the predictions of social identity theory. In that sense, the national identity measure outperforms all other measures of national attachment and provides unambiguous evidence that a strong American identity promotes civic involvement.     

Patriotism,black politics and racial justice in America

Recent decades have seen an upsurge in interest in patriotism among progressive intellectuals and within progressive politics, while recent manifestations of black politics in the era of President Barack Obama have utilized patriotic narratives. We question this turn to patriotism on the grounds that it is a questionable manner in which to pursue racial justice in our post-Civil Rights political landscape. Patriotic appeals to civic virtue always invoke or imply the anti-patriot who lacks that virtue and is therefore less capable of exercising exemplary citizenship. This idea of the anti-patriot, however, easily coalesces with and buttresses the language of cultural pathology used historically to argue that African-Americans are deficient in civic virtue and key for reproducing racial inequality. The idea of the anti-patriot could thus provide another vocabulary for displacing responsibility for addressing racial inequality away from white Americans and onto black Americans. After illuminating this dynamic at work in some of the most successful African-American patriotic thinkers—Frederick Douglass, Martin Luther King, Jr., and Barack Obama—we conclude by arguing that those concerned with racial justice should reject patriotism in favor of three alternative traditions in African-American political thought: self-examination, prophecy, and rage.     

Budget institutions and taxation

While a number of different studies have explored the effects of budgetary procedures and the centralization of the budget process on government debt, deficits and spending, few of them have explored whether such fiscal institutions matter for public revenue. This article argues that centralizing the budget process raises the levels of taxation by limiting the ability of individual government officials to veto tax increases in line with common-pool-problem arguments regarding public finances. Using detailed data on budgetary procedures from 15 EU countries, the empirical analysis shows that greater centralization of the budget process increases taxation as a share of GDP and that both the type of budget centralization and level of government fractionalization matter for the size of this effect. The results suggest that further centralizing the budget process limits government debt and deficits by increasing public revenues as well as constraining public spending.     

National financial structures,capital mobility,and international economic rules: The normative consequences of East Asian,European, and American distinctiveness

In addressing the relationship between the structures of national financial markets, capital mobility, and the rules governing international trade and investment, this article combines theory and policy. Focusing mainly on the United States, Germany, and Japan, it first draws together themes and suggestive evidence from diverse bodies of research on international capital mobility and national financial structures. On this basis, it argues that, notwithstanding the increasing mobility of capital, asymmetries in those structures persist and have important consequences for the rules of the international economic game as they are now evolving. The article then looks more deeply at East Asia, the region that appears to be presenting the clearest challenge to existing international rules. In its conclusion, and in light of that challenge, the article discusses the agenda that confronts researchers and policy-makers as they attempt to assess and re-calibrate rules to govern the more complex international economy of the 1990s and beyond.     

Globalization,government spending and taxation in the OECD

Abstract. This article assesses the impact of globalization on welfare state effort in the OECD countries. Globalization is defined in terms of total trade, imports from low wage economies, foreign direct investment, and financial market integration. Welfare effort is analyzed in terms both of public spending (and separately on social service provision and income transfer programs) and taxation (effective rates of capital taxation and the ratio of capital to labor and consumption taxes). Year–to–year increases in total trade and international financial openness in the past three decades have been associated with less government spending. In contrast, integration into global markets has not been associated either with reductions in capital tax rates, or with shifts in the burden of taxation from capital to consumption and labor income. Moreover, countries with greater inflows and outflows of foreign direct investment tend to tax capital more heavily.     

The illusory leader: natural resources, taxation and accountability

This paper proposes and tests a mechanism through which natural resources can affect democracy. I posit that, in the presence of high natural resource rents, leaders lower the burden of taxation on citizens in order to reduce the demand for democratic accountability. The theory is corroborated using micro-level data from public opinion surveys across 15 sub-Saharan countries, in addition to country-level data on natural resource rents. Results are robust to a range of alternative specifications. A supplementary analysis reveals that, consistent with the two-period model proposed, the effects are more acute closer to national elections.     

Progressive taxation and tax morale

Due to strong evidence indicating that tax morale affects actual tax-paying behavior, finding the determinants of tax morale could help both to understand and to fight tax evasion. In this paper we analyze the effect of progressive taxation on individual tax morale using a cross-country approach—a research question that has not been investigated in the existing literature. Our theoretical analysis leads to two testable predictions. First, an individual’s tax morale is higher, the more progressive the tax schedule is. Second, the positive impact of tax progressivity on tax morale declines with income. In our empirical analysis we make use of a unique dataset of tax progressivity measures, namely the World Tax Indicators, and follow most of the tax morale literature by employing the World Values Survey to measure individual tax morale. Controlling for a wide range of potential confounders, we are able to confirm both hypotheses in our empirical analysis.     

Campaigns,political mobility,and communication

We study the interdependence between campaign contributions, the candidates’ positions, and electoral outcomes. In our model, a candidate who moves away from his firmly established position towards a more risky one generates costs for the voters. Campaign contributions allow the candidates to reduce these mobility costs. We show that if donations were prohibited, then a unique equilibrium regarding the position choices of candidates would exist. With unrestricted financing of political campaigns, two equilibria emerge, depending on whether a majority of interest groups runs to support the leftist or rightist candidate. Interest groups may finance candidates whose position is far away from their own ideal point. The equilibria generate a variety of new features of campaign games, and may help identify the objective functions of candidates empirically.     

A New Progressive Patriotism

The need to hold capital to account and to bend markets to the common good is as powerful as ever, yet it is becoming steadily harder to create an electoral or political majority for such an idea in societies that are fractured and divided. The fundamental bond between voters and parties depends on political identity relationships; old ones are fading, new ones need to be created. The most dynamic politics in advanced capitalist societies are those of nation, people and place. The strategic challenge for the left is to create a new progressive patriotism that can embed radical ideas in a common sense of national purpose.     

当代中国爱国主义:基本特征、社会分层、社会效应

当今中国爱国主义研究的伦理-政治范式难以回答"一般民众的爱国主义状况究竟如何"等问题,而需要向实证研究的范式转型。基于2007和2012年"全国公众价值观状况调查"数据的探索性研究发现,我国受访对象总体上有较高的爱国主义水平,男性、低年龄组和单身群体更高;在阶层差异上,"小学以下"阶层、"高收入"阶层和"下层群众"的爱国主义水平偏低;爱国主义精神越强,对工作重要性、生活幸福感、人际信任、人际公正感受、政治重要性、政治兴趣、民主状况、越轨拒斥、我国尊重人权以及环保意识等越表示肯定。最后讨论了研究意义与不足。     

No direct taxation without new elite representation: Industrialization and the domestic politics of taxation

The nineteenth century marked the founding period of modern public finance. We examine the domestic and non-war related determinants of direct taxation in this early democratic period and in a state building context. We argue that the reasons for the expansion of direct taxation can be found in the political competition between different elite groups in the context of industrialization. Systematically differentiating between economic and political arenas, we show that intra-elite competition in industrializing economies leads to higher levels of direct taxation only if the new economic elites are able to translate their economic power into the political arena, either through the representative system or by extra-parliamentary means. In addition, we demonstrate that these processes are directly linked to public investments in policy areas related to the interests of new economic elites such as public education. Our analysis is based on novel subnational data from the period 1850 to 1910, enabling us to concentrate on the domestic determinants of direct taxation.     

For a European Constitutional Patriotism

In recent years, two dominant models for understanding the source of common political identities have emerged in the European context: the universalist paradigm of constitutional patriotism and the communitarian paradigm of 'civic nationalism'. In view of this dichotomy, one could be tempted to think that only a combination of these two positions could deal with the mixed nature of European architecture. The European Union would thus give birth to the appealing synthesis of a 'cosmopolitan communitarianism'. This choice of a middle way is challenged in this paper. Instead, I argue that the national or communitarian challenge would be better met by the development of constitutional patriotism rather than by a loose compromise. Contrary to what most commentators seem to believe, constitutional patriotism has practical significance, is historically embedded and seeks to promote a shared political culture.     

National Identity of Locality: The State,Patriotism, and Nationalism in Cyber China

Journal of Chinese Political Science - National identity is the cognition of citizens regarding to which political community they belong, and the tendency to accept the political, cultural and...