The Taxman Tools Up: An Event History Study of the Introduction of the Personal Income Tax in Western Europe, 1815 - 1941
Aidt, Toke S.
Jensen, Peter S.
Faculty of Economics, University of Cambridge, UK
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Aidt, T. S., & Jensen, P. S. (2007). The Taxman Tools Up: An Event History Study of the Introduction of the Personal Income Tax in Western Europe, 1815 - 1941. http://dx.doi.org/10.17863/CAM.5131
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 find evidence that the extension of the franchise reduced the likelihood of adoption of the income tax.
Voting Franchise, Social Learning, Tax Collection Technology, Public Finance, Income Taxation
This record's DOI: http://dx.doi.org/10.17863/CAM.5131