Funding the Modern State: The Introduction of Value Added Tax in France
French fiscal reform stemmed from four separate but inter-related factors. The first was the rapid growth in government expenditure after the Second World War and a decline in the willingness of French people to lend money to the government. The second was that the tax system was seen to be profoundly inequitable, with reforms being a constant preoccupation of postwar governments. Thirdly, the tax system was considered to be inefficient and open to wide-scale fraud. And finally, the tax system was seen to favour and protect archaic and inefficient methods of production. However, not all these factors were of equal importance, as will now be explained.
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