You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Impact of Taxes on Growth and Distribution in Developed Capitalist Countries: A Cross-National Study
Claudio J. Katz, Vincent A. Mahler and Michael G. Franz
The American Political Science Review
Vol. 77, No. 4 (Dec., 1983), pp. 871-886
Published by: American Political Science Association
Stable URL: http://www.jstor.org/stable/1957563
Page Count: 16
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Has the scope of public planning in contemporary capitalist economies promoted or hindered economic growth and income distribution? We explore this question by assessing the impact of various mechanisms for raising government revenues on investment, growth, and income distribution in 22 developed market economy countries. The article considers whether growth and distribution are affected differently by governments' relative reliance on personal and corporate income taxes, social security contributions, property taxes, and sales and value added taxes, or by the relative progressivity of tax mechanisms. Our findings lend support to the assertion that fiscal instruments (especially personal income taxes) can be used successfully to achieve greater income equality. On the other hand, these findings run counter to the conventional notion that an automatic trade-off exists between an active public sector and a dynamic, expanding economy: although there is surely some tension between the economic goals of growth and equality, it is not at all clear that they are necessarily incompatible or that government can contribute only to the latter.
The American Political Science Review © 1983 American Political Science Association