This major international handbook provides a complete review and guide to past and present knowledge in this essential field of inquiry. Assembling an outstanding team of scholars from around the world, it comprehensively explores the current state of the art in academic thinking and the current structures and processes for the administration of public policy following this period of rapid transformation and change.
Chapter 30: Critical Choices for Design and Operation of Public Revenue Systems
Critical Choices for Design and Operation of Public Revenue Systems
Taxation is at the heart of democratic government in a modern market economy. Such a government requires resources to deliver services decided upon by representatives of the people and these resources must be purchased from private owners on the open market, not commandeered in the fashion of feudal lords or modern dictators. Those purchases require money and, although national governments have the power of seigniorage, money creation usually represents an economically unacceptable option. The history of horrendous inflation generated by uncontrolled money creation as a means of finance — the American Confederate States, post-First World War Germany, the countries of the former Soviet Union in the ...