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Regressive Taxation and the Welfare State - Path Dependence and Policy Diffusion (Paperback)
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Regressive Taxation and the Welfare State - Path Dependence and Policy Diffusion (Paperback)
Series: Cambridge Studies in Comparative Politics
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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
labour interest. Although the size of the government has become the
most important policy difference between the left and right in
post-war politics, the formation of the government's funding base
is also important. Junko Kato finds that the differentiation of tax
revenue structure is path dependent upon the shift to regressive
taxation. Since the 1980s, the institutionalisation of effective
revenue raising by regressive taxes during periods of high growth
has ensured resistance to welfare state backlash during budget
deficits and consolidated the diversification of state funding
capacity among industrial democracies. This book challenges the
conventional wisdom that progressive taxation goes hand-in-hand
with large public expenditures in mature welfare states and
qualifies the partisan centred explanation that dominates the
welfare state literature.
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