No direct taxation without new elite representation: Industrialization and the domestic politics of taxation

Abstract

The nineteenth century marked the founding period of modern public finance. We examine the domestic and non‐war related determinants of direct taxation in this early democratic period and in a state building context. We argue that the reasons for the expansion of direct taxation can be found in the political competition between different elite groups in the context of industrialization. Systematically differentiating between economic and political arenas, we show that intra‐elite competition in industrializing economies leads to highe Show more