Progressive taxation is an effective redistributive tool in times of growing inequality. However, like all public policies, an increase in tax progressivity is unlikely if it lacks popular demand. Has the financial crisis affected the demand for progressive taxation? Building on research that has identified fairness beliefs as the main factor pushing for taxes on the rich, I argue that the Great Recession and states’ reactions to it have caused a general shift in tax policy preferences. As a consequence, demand for tax progressivity is higher in crisis countries. Multilevel analyses using survey data for 32 countries show support for my argument. These findings have important implications for our understanding of the politics of redistribution in the 21st century.
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Has the financial crisis influenced taxes on the rich? In this article, I argue that crisis countries have raised income tax progressivity because of fiscal fairness considerations. I test this claim by analysing a new data set on top marginal personal income tax (PIT) rates for 122 countries from 2006 to 2014, applying matching methods and a difference-in-differences design. The results show that countries with a financial crisis have increased top PIT rates by 4 percentage points. Furthermore, rising public debt only leads to higher top PIT rates when it is crisis-induced. These findings demonstrate that notions of fiscal fairness can still shape progressive taxation in the 21st century.
Do more rules improve overall policy performance? To answer this question, we look at rule growth in the area of environmental policy from an aggregate perspective. We argue that impactful growth in rules crucially depends on implementation capacities. If such capacities are limited, countries are at risk of ‘empty’ rule growth where they lack the ability to implement their ever‐growing stock of policies. Hence, rules are a necessary, yet not sufficient condition for achieving sectoral policy objectives. We underpin our argument with an analysis of the impact of a new, encompassing measure of environmental rule growth covering 13 countries from 1980 to 2010. These findings call for ‘sustainable statehood’ where the growth in rules should not outpace the expansion in administrative capacities.
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