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The Dynamics of Policy Formation: Income Tax Rates in Israel, 1948–1975

Author

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  • A Radian

    (Department of Political Science, The Hebrew University of Jerusalem, Mount Scopus, Jerusalem 91905, Israel)

Abstract

In this paper, an attempt is made to show the importance of incorporating ‘politics’ into tax designs. Models of optimal taxation generally offer limited policy-relevant guidance, since they either ignore politics altogether or make wrong assumptions concerning goals and rules of the game. One such common error is the assumption that governments attempt to promote ‘equity’. A case study of changes in the top marginal rate of income tax in Israel demonstrates how goals, values, constraints, and opportunities shape the definition of policy problems and the solutions that are eventually chosen.

Suggested Citation

  • A Radian, 1984. "The Dynamics of Policy Formation: Income Tax Rates in Israel, 1948–1975," Environment and Planning C, , vol. 2(3), pages 271-284, September.
  • Handle: RePEc:sae:envirc:v:2:y:1984:i:3:p:271-284
    DOI: 10.1068/c020271
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    References listed on IDEAS

    as
    1. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922.
    2. March, James G. & Olson, Johan P., 1983. "Organizing Political Life: What Administrative Reorganization Tells Us about Government," American Political Science Review, Cambridge University Press, vol. 77(2), pages 281-296, June.
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