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The Taxman Tools Up: An Event History Study of the Introduction of the Personal Income Tax in Western Europe, 1815-1941

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  • Aidt, T.
  • Jensen, P.S.

Abstract

The introduction of income taxation was a landmark in the development of the fiscal state in Western Europe and elsewhere. This paper presents an event history study of the adoption of the income tax in 11 Western European countries between 1815 and 1941. We find evidence that social learning, reductions in tax collection costs and to a lesser extend spending pressures played a significant role for the adoption decision. Surprisingly, we also .nd evidence that the extension of the franchise reduced the likelihood of adoption of the income tax.

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0766.

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Length: 24
Date of creation: Oct 2007
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Handle: RePEc:cam:camdae:0766

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Web page: http://www.econ.cam.ac.uk/index.htm

Related research

Keywords: Voting franchise; social learning; tax collection technology; public finance; income taxation.;

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