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The Political Economy of the Fiscal Transition

In: The Spanish Fiscal Transition

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  • Sara Torregrosa Hetland

    (Lund University)

Abstract

This chapter discusses the process of the Spanish tax reforms of 1977–1986, and the factors affecting its development. It first introduces the main political parties of the time, and how their relative power was impacted by the nature of the political transition and the electoral system: several aspects, including malapportionment, increased the representation of conservative parties, affecting the translation of public preferences to policymaking. Secondly, reference is made to the very fundamental economic changes of the time, in both short-term aspects and structural terms (low growth, inflation, international openness), arguing that these affected the chances of establishing a progressive tax system. Finally, the reforms of the main taxes in the system are presented, with reference to the discussions in their parliamentary processing and to the action of pressure groups.

Suggested Citation

  • Sara Torregrosa Hetland, 2021. "The Political Economy of the Fiscal Transition," Palgrave Studies in Economic History, in: The Spanish Fiscal Transition, chapter 0, pages 83-115, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-3-030-79541-2_4
    DOI: 10.1007/978-3-030-79541-2_4
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