Regressive Taxation and the Welfare State: Path Dependence and Policy Diffusion (Cambridge Studies in Comparative Politics)

Political economists have viewed large public expenditures as a product of leftist government and the expression of a stronger representation of labor interest. The formation of governments' funding bases is a topic that has not been thoroughly explored, and this book sheds important new light on the issue of taxes and welfare. Beginning with a clarification of the development of postwar tax policies in industrial democracies, Junko Kato finds that the differentiation of tax revenue structure is path dependent upon the shift to regressive taxation. Kato challenges the conventional belief that progressive taxation leads to large public expenditures in mature welfare states.

Government size has attracted much scholarly attention. Political economists have considered large public expenditures a product of leftist rule and an expression of a stronger representation of labor interest. The formation of government's funding base has not been thoroughly explored. This book sheds new light on this neglected area. Beginning with a clarification of the development of postwar tax policies in industrial democracies, Junko Kato finds that the differentiation of tax revenue structure is path dependent upon the shift to regressive taxation.