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Representation without taxation, taxation without consent. The legacy of Spanish colonialism in America

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  • Irigoin, Alejandra

Abstract

The essay examines Spain’s colonial legacy in the long run development of Spanish America. It surveys the fiscal and constitutional outcomes of independence and assesses the relative burden imposed by colonialism. Constitutional asymmetries between revenue collecting and spending agents constrained de facto governments’ power to tax. Inherent disparities embedded in colonial fiscal system worsened with vaguely defined representation for subjects and territories and troubled their aggregation into a modern representative polity. Governments with limited fiscal capacity failed to deliver public goods and to equitably distribute costs and benefits of independence. Growing indirect taxes, debt and money creation allowed them to transfer the fiscal burden to other constituents or future generations. Taxpayers realised the asymmetry between private contributions and public goods and hence favoured a low but regressive taxation. Comparisons with trajectories in the metropolis and the US are offered to qualify this legacy.

Suggested Citation

  • Irigoin, Alejandra, 2015. "Representation without taxation, taxation without consent. The legacy of Spanish colonialism in America," Economic History Working Papers 64804, London School of Economics and Political Science, Department of Economic History.
    • Handle: RePEc:ehl:wpaper:64804
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    References listed on IDEAS

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    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N2 - Economic History - - Financial Markets and Institutions
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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