Why is it so difficult to tax the rich? Evidence from German policy-makers.

Why are rich citizens not taxed more heavily – despite growing inequality (aversion)? The literature offers several explanations, all of which ultimately work through the minds and actions of politicians. Taking Germany as a case, we therefore ask in 25 semi-structured interviews which obstacles lef...

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Detalles Bibliográficos
Publicado en:Journal of European Public Policy Vol. 29; no. 5; pp. 767 - 787
Autores principales: Fastenrath, Florian, Marx, Paul, Truger, Achim, Vitt, Helena
Formato: Artículo
Publicado: Taylor & Francis Ltd May2022
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:Why are rich citizens not taxed more heavily – despite growing inequality (aversion)? The literature offers several explanations, all of which ultimately work through the minds and actions of politicians. Taking Germany as a case, we therefore ask in 25 semi-structured interviews which obstacles left-wing politicians perceive in taxing the rich. Overall, tax increases are perceived as difficult projects. Organized business is described as a major barrier, but in a way that goes beyond existing accounts: besides classical lobbying, business interests are seen to influence electoral politics through long-term communication strategies shaping tax preferences. Moreover, the interviews point to a previously unrecognized organizational barrier that we coin the 'vicious competence cycle': left-wing politicians are often overwhelmed by tax issues which results in consequential disadvantages when confronted with resourceful anti-tax actors. They describe how party-internal discourses shape these competence patterns by influencing motivations, feasibility perceptions, and electoral strategies.