Chapter 18 -- Taxation and the affirmative state -.pdf
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Chapter 18 -- Taxation and the affirmative state -.pdf

Chapter18--Taxationandtheaffirmativestate--NortonAugust.pdf

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Chapter18TaxationandtheattackontheAffirmativeStateFinalDraft,August2009Whatmakesasocietydemocraticisnotsimplythatpoliticalofficialsareelectedinaproperlydemocraticmanner,althoughthatisobviouslyimportant.Ademocraticsocietyisalsooneinwhichpeoplehavethepowerthroughtheirpoliticalinstitutionstomakecollectivedecisionsovermattersofpublicconcern.Democracyisthusaquestionofthescopeofpublicauthority,notsimplyofthewaythatauthorityisexercised.Asocietyislessdemocraticwhenthepublicdomainisseverelynarrowed,anddecisionswithlargecollectiveramificationsaremadeprivately.Thisimplies,aswearguedinchapter16,thatwecanmakeameaningfuldistinctionbetweenmattersofpublicconcernandprivatematters.Thisiscertainlyadifficultandhotlycontestedtask,butwhateverelse“public”mightmean,itincludestheprovisionofawiderangeofpublicgoodsandtheregulationofthemarketinwaysthatminimizeitsnegativeexternalities.Todothesethings,thestateneedsresources.Inacapitalistsocietyinwhichmostoftheeconomyisorganizedthroughprivatelyownedenterprisesandmostincomeisearnedthroughmarketactivity,thewaythisisaccomplishedisthroughtaxation.Thischapterexplorestheproblemoftaxationandtheusestowhichtaxesareputbythedemocraticstate.Taxationmightseemtobeadry,technicaltopic,ofconcernmainlytospecialists.Thiswouldbeamistake.TaxationisattheverycoreofhowademocraticcapitalistsocietyliketheUnitedStatesworks.Itraisesfundamentalquestionsabouttheprospectsfordemocracyandtheconditionsforfairnessinsocietiesinwhichsomuchpowerisvestedinprivatepropertyandthemarket.Wewillbeginbyexploringdifferentwaysoftheoreticallyunderstandingtheideaoftaxationandtheproblemofwhatitmeansforataxsystemtobe“fair.”WewillthenlookattaxationintheUnitedStates,examininganumberofmythsaboutthetaxsystem.Thechapterwillconcludewithadiscussionofanti-taxpoliticsandtheassaultontheaffirmativestate.I.WHATISTAXATION?Therearetwosharplydifferentwaysofthinkingabouttaxation:(1)Taxationasthepublictakingresourcesfromtheprivate,and(2)Taxationasthedivisionoftheeconomicpiebetweenpr