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

Toke S Aidt () and Peter Sandholt Jensen ()

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

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.

Keywords: Voting franchise; social learning; tax collection technology; public finance; income taxation. (search for similar items in EconPapers)
JEL-codes: D7 H1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-his, nep-pbe and nep-pub
Date: 2007-10
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Persistent link: http://EconPapers.repec.org/RePEc:cam:camdae:0766

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