Journal Article

The Origins of Tax Systems: A French‐American Comparison

Morgan, Kimberly J., Prasad, Monica

2009

Overview

This article examines the origins of tax systems. Through a historical comparison of France and the United States, and analysis of several shadow cases, the article explains why the United States has relied more heavily on progressive income taxation than France, which has favored regressive sales taxes. This study traces the origins of these two tax systems to the early 20th century, arguing that decisions about tax structure were shaped by resistance to the concentration of economic power in the United States and the centralization of state power in France. In the United States, the rapid concentration of economic power in the late 19th century spurred a political movement for a tax with clear redistributive purposes. In France, resistance to the centralization of state power and concomitant fears of \"fiscal inquisition\" weakened the drive for an effective income tax, leaving the state to rely on consumption taxes to meet its revenue needs. These 19th-century movements of resistance to modernization shaped the foundations of contemporary political economy. Adapted from the source document.

• Publisher: University of Chicago Press,University of Chicago, acting through its Press
• Subject: 19th century / 20th century / Centralization / Centre-periphery relations / Comparative analysis / Consumption / Economic history / Economic sociology / Fiscal policy / France / General studies. Economic systems / General studies. Ideologies / Income / Income tax / Income taxes / Modernization / Political activism / Political Economy / Political movements / Political power / Political sociology / Power / Progressive taxes / Resistance / Sales / Sales taxes / Social history / Sociology / Sociology of economy and development / State Power / Tax systems / Taxation / U.S.A / United States of America / Use taxes