Fiscal Sociology at the Centenary : UK Perspectives on Budgeting, Taxation and Austerity

This book discusses the socio-legal tax state and its relationship to development, inequality and the transnational. 'Fiscal Sociology' commenced in 1918 when Joseph A. Schumpeter examined the links between capitalism and taxation, arguing that fiscal pressures on governments led directly to the development of tax collection, and the burgeoning growth of capitalist economies. ​The identification of taxation as an important component of capitalism has continued to change the way that theoretical sociologists conceptualise tax. This book documents the history of this literature to provide a summary of the topic for scholars seeking a bridge between taxation law and contextual, historical, and anthropological analyses of the development of the state, more generally. Whilst Schumpeter’s insights have been celebrated over the past one hundred years, taxation has slipped from the agenda of many scholarly disciplines, in relation to analyses of poverty, globalisation, and equality. __Fiscal Sociology at the Centenary__ fills this gap. The implications of this literature for taxation law in the United Kingdom, in particular, are considered. Contents 8 1 Introduction 10 References 16 Part I Fiscal Sociology 17 2 What Is Fiscal Sociology? 18 The Field: A Brief Introduction 18 Example of Study: Tax Revolts 19 The Scholar: A Brief Introduction to Joseph Schumpeter 21 The “Sacred Decade” 21 Career in the USA 23 Legacy 24 The Founding Text: ‘The Crisis of the Tax State’ 25 The Finanzplan 31 Definition of the Term: Tax State 33 Introduction of a Methodology: Or, Why Is an Essay from 1918 Still Important? 34 Paretian Fiscal Sociology 36 What About Marx? 37 The Modern Fiscal Sociology 40 The Post-2008 Era 41 Parliament 41 The New Fiscal Sociology 43 Closing: A Next Step for the New Fiscal Sociology 44 References 46 Part II “What Is the Nature of the Tax State? How Did It Come About?” (Schumpeter 1918: 100) 52 3 The Fiscal State and Budget Institutions 53 The UK’s Budget History: A Fiscal, Sociological Consideration 54 Pitt the Younger, and the Old Sinking Fund 57 Gladstone’s Budget of 1853 59 The People’s Budget of 1909 62 Budgeting and Executive Power in the UK 65 Local Authorities and the Thatcher Era 66 First Lord of the Treasury 67 Closing 69 References 70 4 Budgets: Process, Rights, and Institutions 75 Process: Twenty-First-Century Legislative Initiatives 75 The Office for Budget Responsibility 78 Budgets as “Transparent” 82 Budgets as “Sustainable” 83 The EU Context 84 Comparative Perspective: The USA 88 Two American Ideas: Tax Expenditures, and Fiscal Federalism 94 Tax Expenditures 94 Fiscal Federalism 96 Closing 99 References 100 Part III “What Are the Social Processes Which Are Behind the Superficial Facts of the Budget Figures?” (Schumpeter 1918: 100) 105 5 The Challenge of Taking Rights Seriously in Fiscal Sociology 106 Taking Rights Seriously with Schumpeter 108 Taking Rights Seriously in Economic Institutions 113 The Importance of Multi-disciplinarity 118 Closing 120 References 122 6 Example One of Taking Law Seriously in Fiscal Sociology: Taxing Inherited Wealth 126 Methodology 126 Capital and Tax Principles 127 Introduction to r > g 129 Tax Principles 132 Global Tax Principles, and Domestic Tax Policy 134 Principles of Taxation in the UK 135 Searching for Tax Principles in Policy Reviews 135 The Meade Review 136 The Mirrlees Review 137 Personal Tax Reform 2010–2015 138 Transnational Tax Principles? 139 Pragmatic Transnational Consensus: The Development of Law and Development (and the Role of Tax Principles) 143 Closing 147 References 148 7 Example Two of Taking Law Seriously in Fiscal Sociology: Tax, Spending and Gender 152 The Value of Fiscal Sociology to Law, Gender, and Inequality (or, Problems with Schumpeter and Marx) 152 The New Fiscal Sociology, and the ‘Gender Norms’ of Empire 154 Independent Taxation 155 Married Couple’s Allowance, and Child Benefit 156 Tax Credits 158 New Labour 159 The Universal Credit 161 The Male Breadwinner Model 162 What About (Gender) Budgeting? 163 Austerity, and the Benefit Cap 166 1. “Objective and Reasonable Justification:” Introduction to the Benefit Cap Cases 168 SG 168 DA 170 2. Indirect Discrimination 172 Why It Matters Whether the Issue Is Addressed from the Perspective of Mothers, or Their Children 173 What About: EU Equality Legislation? 177 3. Attaching Benefits to Children 178 Legitimacy 180 Workfare, Welfare, Poor Law, and the Male Breadwinner Model 181 A Fiscal, Sociological Analysis: Tax Principles and Austerity 183 Closing 185 References 186 Conclusion 192 Bibliography 200 Index 226 Front Matter ....Pages i-viii Introduction (Ann Mumford)....Pages 1-7 Front Matter ....Pages 9-9 What Is Fiscal Sociology? (Ann Mumford)....Pages 11-44 Front Matter ....Pages 45-45 The Fiscal State and Budget Institutions (Ann Mumford)....Pages 47-68 Budgets: Process, Rights, and Institutions (Ann Mumford)....Pages 69-98 Front Matter ....Pages 99-99 The Challenge of Taking Rights Seriously in Fiscal Sociology (Ann Mumford)....Pages 101-120 Example One of Taking Law Seriously in Fiscal Sociology: Taxing Inherited Wealth (Ann Mumford)....Pages 121-146 Example Two of Taking Law Seriously in Fiscal Sociology: Tax, Spending and Gender (Ann Mumford)....Pages 147-186 Back Matter ....Pages 187-224