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Why do countries repeal the inheritance tax? To investigate this question, we use a novel dataset on inheritance tax introductions and repeals worldwide. We argue that revenue requirements are the main determinant of repeal risks: The inheritance tax is resilient as long as it is central to the national revenue system; it becomes vulnerable to attacks once the rise of more efficient tax instruments marginalizes its revenue contribution. Devoid of fiscal purpose, its survival depends mainly on its redistributive features. Redistribution, however, is essentially contested and should be more important in democracies. The evidence is in line with our conjecture: The likelihood of inheritance tax repeal increases as other more buoyant taxes rise and non-democracies are more likely to repeal the tax than democracies. [ABSTRACT FROM AUTHOR]

The Covid pandemic confronted the Merkel IV government with unprecedented fiscal challenges. We argue that the government's response to these challenges constitutes a break with established patterns of German fiscal policy orthodoxy in at least three areas. First, the government suspended the debt brake and gave up the 'Schwarze Null' without much debate. Second, it implemented a fiscal rescue package that struck a new balance between the interests of the export and the domestic sector. Third, the government supported a coordinated fiscal response on the European level thereby giving way to debt pooling across EU member states. The article traces the groundwork for these changes that was laid in the first two years of the government and then compares the German fiscal response to Covid-19 with German policy during the Financial Crisis. We conclude by discussing whether Germany has shifted to a new fiscal policy regime. [ABSTRACT FROM AUTHOR]

Research shows that low-income groups are increasingly left behind economically and excluded from the policy-making process of advanced democratic societies. This suggests that governments do not sufficiently address the needs of the poor. In this article, we explore to what extent labour power positively influences redistribution and policies for society overall and for the poor in specific. Following standard political economy arguments, a powerful working class leads to more egalitarian forms of capitalism as they are the main beneficiaries from redistribution. But do social-democratic parties and trade unions also represent the poorest in society, those who participate less in political decision-making and whose jobs are often not covered by collective bargaining agreements? Using comparative time-series data for 23 OECD countries since the 1980s, the findings suggest a positive role of the Left, at least for trade unions on poverty reduction, but less for specific policies benefiting the poor. [ABSTRACT FROM AUTHOR]

Which factors have driven wealth taxation over the long run of history? We look at a new dataset on the first permanent introduction of taxes on net wealth, i.e., recurrent taxes levied based on the absolute value of an individual's financial assets, to answer this question. First, we place the introduction of wealth taxation in the historical genesis of the modern tax state. We find that recurrent taxes on net wealth are a more recent, yet less widely spread phenomenon than other progressive taxes. Second, we analyse the historical drivers of wealth taxation. In particular, we argue that the net wealth tax was mainly used as an 'emergency tax' when countries faced major shocks. Utilizing event history analyses, we compare the impact of two major types of shocks: wars and recessions. Our results show that wealth taxes were primarily introduced in the aftermath of major economic recessions, whilst wars do not speed up the uptake of wealth taxes. In contrast to other modern tax introductions, we do not find that countries are generally more likely to introduce wealth taxes as a result of broader societal change such as modernization or democratization. [ABSTRACT FROM AUTHOR]

Developing economies need to increase their tax revenue. The international community is keenly aware of this challenge and recently dedicated substantial resources and advocacy to assist countries in mobilizing domestic tax revenue as part of the Sustainable Development Goals. Considering, however, the extensive research that foreign aid is often ineffective, it is not obvious that this tax assistance will help developing countries raise revenue. In this article, we assess the impact of international assistance programs for tax purposes (i.e. tax aid) on tax revenue generation, indirect taxation reform, and informality across the developing world. We analyze panel data of 137 developing countries between 1972 and 2013 from the AidData, International Centre for Tax and Development, and World Development Indicators, and World Bank Project Data datasets. We also assess survey data from the World Bank's Enterprise Survey and World Values Survey. Our findings indicate that tax aid does not robustly increase the number of taxpayers, especially in the short run. However, tax aid is effective in generating domestic tax revenue in precisely the way international agencies advocate, namely a strong reliance on the value-added tax. The data underlying this article are available on the ISQ Dataverse, at https://dataverse.harvard.edu/dataverse/isq. [ABSTRACT FROM AUTHOR]

The adoption of modern tax policies is crucial for social development. Taxes raise revenue, which allows governments to invest in public goods and social protection. At the same time, they can be highly redistributive and thus are complementary to social policies. Hence, the adoption of modern taxes is a critical step towards social development as it allows for the very financial foundation for investing in and increasing the well-being of individuals. But how can we explain the global spread of taxes around the world? While most countries nowadays have adopted similar tax instruments, the timing of legislation has varied widely. A common explanation is that democracies are more likely to adopt new and redistributive forms of taxes as they are more accountable to the poor. In this article, we shed light on the link between regime type and tax legislation based on a new historical and global dataset for up to 131 countries since the 19th century. Our findings show that whereas regime type has no influence on the introduction of regressive taxes, democratic countries are more likely to adopt progressive taxes. [ABSTRACT FROM AUTHOR]

The climate crisis looms but support for fuel taxation is low. How to boost support? The obvious way is to make the connection to the climate crisis explicit. Many observers fear, however, that policy myopia renders this strategy ineffective: As the consequences of the climate crisis are long‐term and insecure, people are loath to pay for costly countermeasures in the short term. We look at policy distraction as a second potential drag. We argue that climate crisis‐induced support for fuel taxation can also be undermined by other salient events which divert attention. To test our argument, we conduct a large‐scale survey experiment with more than 21,000 respondents in 17 European countries. Our results show that a simple climate crisis prime raises support for fuel taxation by 12 percentage points. The effect decreases but remains substantial when stressing the long time horizon of the climate crisis. It almost disappears when other current crises (COVID‐19 and Russian military aggression) are mentioned. Thus, distraction by concurrent events is a serious impediment to mobilising support for fuel taxation. [ABSTRACT FROM AUTHOR]

The goal of this special issue is to highlight the importance of unconventional social policies, theorize their development in comparison with traditional welfare state accounts and outline a new research agenda. In this introduction to the special issue, the editors present the concept of social policy by other means as encompassing two kinds of unconventional social policy (from the point of view of mainstream comparative research): First, functional equivalents to formal systems of social protection and, second, non-state provision of benefits. The concept builds upon a sizeable, but fragmented literature in comparative welfare state research. While numerous examples demonstrate that social policy by other means is more pervasive in both OECD and non-OECD countries than often acknowledged, a brief survey of the top 20 articles in the field reveals that this fact is not sufficiently reflected in the academic literature. With reference to both existing studies and the contributions to this special issue, the editors go on to explore (1) the different forms of social policy by other means, (2) explanatory theories and (3) their effectiveness in terms of social outcomes. They close by outlining a research agenda. [ABSTRACT FROM AUTHOR]

Social policy is an important instrument states have at their disposal to offer protection against life risks. Yet nearly one century after the foundation of the International Labour Organization (ILO) the majority of the world population still lives without adequate social protection and even in the Western world many observers fear that globalization is undermining the welfare state. Based on various data sources we illustrate the development of social security around the world. We show that more and more states introduce social security programs and increase their social spending. Furthermore, new social policy programs have emerged which cover formerly marginalized groups of society. [ABSTRACT FROM AUTHOR]

Globalisation has triggered a downwards trend in direct taxation as governments compete for internationally mobile capital. This popular postulation has blurred the attention to potential upward constraints on tax policy-making emanating from globalised capital markets. In this paper, we illustrate when and how capital markets exert an upward pressure on taxes. While the increasing access to international capital allowed governments in developed democracies to indulge their voters with deficit-financed spending, the most recent crisis has shown that this is no panacea. When international loans become costly, governments have to revert to raising revenue domestically. Using comparative time-series data since the 1980s, we investigate how rising bond yields affect the number and the direction of tax reforms, as well as the tax mix in the OECD. The empirical analysis provides some evidence that international capital markets place an upward pressure on taxes, recently above all on consumption taxes. Yet, governments have also retained room to manoeuvre as a number of tax decisions are more dependent on domestic political factors than on pressure from the capital markets. [ABSTRACT FROM PUBLISHER]

Comparative welfare state research is directed mainly toward the development of welfare states in advanced democracies, although the majority of people live outside the OECD and often face graver social risks arising from poverty and starvation. To secure a minimum standard of living, nearly all countries have introduced social programs to protect their citizens. Yet the timing of when governments take on the responsibility of providing social protection varies decisively across the world. Using data for 177 territories and independent states over the period from 1820 to 2013, we illustrate how social security legislation has emerged throughout the world. Although we find that the patterns and pathways vary strongly between different regions, the evidence shows that the proliferation of social protection is a transnational event: regional diffusion and membership in the International Labour Organization matter irrespective of the regional and temporal context. [ABSTRACT FROM AUTHOR]