LEVIATHAN, TAXES AND THE GEESE: (WHY DO WE NEED A TAX CONSTITUTION?)

Year 2009, Volume: 1 Issue: 1, 59 - 72, 01.06.2009

Coşkun Can Aktan

Abstract

The taxing power of the government was misused by rulers throughout the history everywhere. Tax rates, tax bases and tax related decisions were changed frequently, and those changes brought new burdens on individuals. Taxplotation is a phenomenon caused by Leviathan (unlimited excessive government power). How can individuals be protected from tax exploitation? How can tax abuse of the governments be stopped? How can arbitrary and discretionary power of the politicians be limited in modern democracies? What effective measures can be taken against tax abuse? Those are the main questions that we aim to explore, analyze and answer.

Keywords

Excessive government, Leviathan, Tax Exploitation

References

• ADAMS, Charles, Those Dirty Rotten Taxes, The Free Press, New York, 1998. AICPA, (American Institute of Certified Public Accountants, Inc.,), “Guiding Principles of Good Tax Policy: A Framework for Evaluating Tax Proposals”, 2001. BEARD, Charles A. & Mary R. Beard, New Basic History of The United States, Second Edition, Doubleday Company Inc., Garden City New York, 1960. BEITO, David T., Taxpayers in Revolt: Tax Resistance During The Great Depression, Chapel Hill: University Of North Carolina Press, 1989. BLACK, Duncan., “Wicksell’s Principle in the Distribution of Taxation”, in: K.K.Eastham (Ed.), Economic Essays in Commemoration of Economics (10931-1955), Wm. Culross, Son. Ltd. 1955. BRENNAN, Geoffrey., “Constitutional Constraints on the Fiscal Powers of Government”, in: Constitutional Economics –Containing the Economic Powers of Government-, Edited by: Richard B. Kenzie, Lexington: Lexington Books, 1984. BRENNAN, Geoffrey and James M. Buchanan, The Reason of Rules, Constitutional Political Economy, New York: Cambridge University Press, 1985. BRENNAN, Geoffrey and James M. Buchanan., The Power to Tax, Analytical Foundations of a Fiscal Constitution, Cambridge University Pres, 1980. BRENNAN, Geoffrey and James M. Buchanan., “Tax System as Social Overhead Capital: A Constitutional Perspective on Fiscal Norms”, in: Public Finance and Economic Growth, Proceedings of the 37th Congress of the IIPF, Tokyo, 1981. pp.41-54. BRENNAN, Geoffrey and James M. Buchanan., “Towards A Tax Constitution for Leviathan”, in: Journal of Public Economics, No 8, December-1977. Pp.255-273. BUCHANAN, James M. “The Limits of Taxation”, in: Taxation –An International Perspective- Proceedings of and International Conference, W.Block and M.Walker (eds.), Vancouver: The Fraser Institute, 1984. BUCHANAN, James M. “Constitutional Constraints on Governmental Taxing Power”, ORDO, vol 30, Stuttgart, 1979. BUCHANAN, James M., “Tax Reform in Constitutional Perspective” in: Law and Economics –Report from a Symposium in Sweden-, Edited by: Göran Skogh, Lund: Jurisdiska Föreningen, 1978. BUCHANAN, James M., “Constitutional Restrictions on the Power of Government”, in: The Theory of Public Choice II, (Ed. By J.M.Buchanan and Robert D. Tollison), Ann Arbor: The University of Michigan Press, 1984. BUCHANAN, James M., “The Political Efficiency of General Taxation”, National Tax Journal, Vol 46, December 1993. BUCHANAN, James M., “Democratic Values in Taxation”, in: James M. Buchanan (Ed), Freedom in Constitutional Contract, Collge Station: Texax A-M University Press, 1977. BUCHANAN, James M. and Geoffrey Brennan., “The Logic of Limits”, National Tax Journal, vol 32, No 2, June 1979. Pp. 11-22. BUCHANAN, James M., “The Ethical Limits of Taxation”, Liberty, Market and State, -Political Economy in the 1980’s, Harvester Press: 1986. BUCHANAN, James M. and Marilyn Flowers., “Constitutional Limits on Taxing and Spending”, The Public Finances, Homewood, Illinois: Richard D. Irwin Inc. 1960.pp. 141-149. BUCHANAN, James M. and Richard E. Wagner, Democracy in Deficit: Political Legacy of Lord Keynes, (see: http://www.econlib.org/library/Buchanan/buchCv8Contents.html) CURRENT, N. Richard, Harry T. Williams, Frank Fridel & Alan Brinkley, American History, Seventh edition, Alfred A. Knopf, New York, 1987. FINDLAY, Ronald and Wilson, John. D. “The Political Economy of Leviathan", in Economic Policy in Theory and Practice, Eds: Assaf Razin and Efraim Sadka. Hong Kong: Macmillan, 1987. HAYEK, Friedrich A. von., Law, Legislation and Liberty, vol 3, The Political Order of a Society of Free People, Chicago: The University of Chicago, 1979. GREENSTEIN, Robert., “The Constitutional Amendment to Require A Two-Thirds Supermajority to Raise Taxes”, (http://www.cbpp.org/) HUME, David., Writings on Economics, E. Retwein (Ed.), Madison: University of Wisconsin Pres, 1955. ITEP (INSTITUTE of Taxation and Economic Policy)., “Tax Principles: Building Blocks of a Sound Tax System”, Policy Brief, 9 May 2004. KHALDUN, Ibn., The Muqaddimah – An Introduction to the History- 5th. ed. N.J. Daood (edited) and P. Rdsental (Translated) Princeton University Pres, 1981. OATES, Wallace E., “Fiscal Competition or Harmonization”, National Tax Journal, Vol LIV. No 3. p. 509. SAY, Jean Baptiste., A Treatise on Political Economy, Philadelphia: Lippincott, Grambo & Co.. 1855, trans. C. R. Prinsep, ed. Clement C. Biddle. Fourth-fifth edition. (See: The Library of Economics and Liberty: http://www.econlib.org/library/Say/sayT41.html) TEATHER, Richard, “Harmful Tax Competition”, Economic Affairs, Volume 22 Issue 4 Page 58 - December 2002. TZU, Lao., The Tao Te Ching, Translated by Stephen Mitchell (http://eawc.evansville.edu/anthology/tao.htm) VEDDER, Richard K. and Lowell E. Gallaway, “Some Underlying Prınciples of Tax Policy”, Prepared for the Joint Economic Committee, September, 1998. WICKSELL, Knut. Finanztheoretische Untersuchungen. Jena: Gustav Fischer, 1896.(Partial translation by J. M. Buchanan as “A New Principle of Just Taxation," in Classics in the Theory of Public Finance, Eds: Richard A. Musgrave and Alan T. Peacock. London: Macmillan, 1958, pp. 72-118.)