The 'Tax-Welfare Mix' : the Welfare State and Extractive Capacity in Japan and Sweden

Gene Park, Assistant Professor in the department of Political Science at Loyola Marymount University (LMU)

RSVP Required by 5PM on JAN 28

The ability of governments to raise revenue to finance spending varies greatly across the industrialized democracies. Despite the prediction of the globalization thesis, variation in budget deficits and public debt has actually increased. While a developed literature has attempted to explain fiscal performance, there has been little attention to the role of that the welfare state might have.  Meanwhile, the welfare state literature has focused on welfare spending with less attention to how such spending is financed.  This presentation shows that the two are linked.  Governments can use taxes not only as a source of revenue but also as a means to achieve redistributive goals directly by targeting tax relief to specific groups.  Using quantitative data and a case study of Japan and Sweden, this study shows how governments combine welfare and tax policies, i.e., the “tax-welfare mix,” shapes their long-term extractive capacity.

Thursday, January 31, 2013 | 12:00 pm — 1:15 pm
Philippines Conference Room, Encina Hall, 3rd Floor

Shorenstein APARC