History and Taxation

Preface v
About the Authors ix
Part One
General Report

Chapter 1: General Report on History and Taxation:
The Dialectical Relationship between Taxation and the Political Balance of Power 3
Peter Essers
1.1. Starting point and goal of the research 3
1.2. Methodology 4
1.3. Test results of the hypothesis on the dialectical relationship between taxation and the political balance of power in the investigated states: Thematic reports 6
1.3.1. “No Taxation without Representation”: The Relationship between Taxes and Revolutions 6
1.3.2. Tax Policy of Nazi Germany 7
1.3.3. Tax Systems of the Former Communist States in Europe 8
1.3.4. Fiscal Federalism and “No Taxation without Representation”: The Historic Dimension 8
1.3.5. Fiscal Challenges to Democracy 9
1.3.6. No Vote, No Tax! Taxation and Women’s Suffrage Movements 9
1.3.7. EU Taxes and “No Taxation without Representation” 10
1.4. Results of the hypothesis tested in the national reports 11
1.4.1. Introduction 11
1.4.2. National reports that describe a dialectical relationship between taxes and revolutions 12
1.4.3. National reports that show a gradual development towards “no taxation without representation” in combination with the rise and functioning of democracies 17
1.4.4. Taxes potentially conflicting with democracy 21
1.5. The dialectical relationship between the repressive taxes of dictators and the balance of power 24
1.5.1. Introduction 24
1.5.2. Repressive taxes in the national reports 27
1.5.2.1. National Socialist tax regimes 27
1.5.2.2. Communist tax regimes 31
1.6. General conclusions 35

Part Two
Thematic Reports
Chapter 2: “No Taxation without Representation”: The Relationship between Taxes and Revolutions 41
Chantal Stebbings
2.1. Introduction 41
2.2. The universality of tax 42
2.3. Tax as a factor in revolutions 44
2.4. Taxation and representation 50
2.5. Conclusion 56

Chapter 3: Tax Policy of Nazi Germany 59
Christine Osterloh-Konrad
3.1. Introduction 59
3.2. Pursuing non-budgetary goals via taxes 59
3.3. Discriminating via taxes 61
3.3.1. Discriminatory interpretation of tax law 61
3.3.2. Discriminatory enforcement of tax rules 64
3.3.3. Overt discrimination by tax rules 64
3.4. Nazi tax policy in the occupied territories 65
3.5. Conclusion 68
Chapter 4: Tax Systems of Former Communist States in Europe 69
Ziemowit Kukulski and Małgorzata Sęk
4.1. Introduction 69
4.2. Common features of communist tax systems 70
4.3. Conclusion 73

Chapter 5: Fiscal Federalism and “No Taxation without
Representation”: The Historic Dimension 75
Bruno Peeters and Rik Smet
5.1. Introduction 75
5.2. Classification of (con)federal state structures 79
5.3. Centrifugal (fiscal) federalism 83
5.3.1. Introduction 83
5.3.2. Symmetrical fiscal federalism 85
5.3.3. Asymmetrical fiscal federalism 85
5.3.4. Ongoing reforms 88
5.4. Centripetal (fiscal) federalism 88
5.5. Fiscal decentralization or devolution in more unitary states 94
5.6. Conclusion 96

Chapter 6: Fiscal Challenges to Democracy 101
Wolfgang Schön
6.1. Prologue: No representation without taxation? 101
6.2. The principle of “congruence” and its challenges 102
6.2.1. The meaning of “congruence” 102
6.2.2. Challenges to “congruence” 103
6.2.2.1. Monarchs and peoples 103
6.2.2.2. Majorities and minorities 103
6.2.2.3. Regions and colonies 104
6.2.3. Congruence under stress 104
6.2.3.1. Monarch versus people 105
6.2.3.2. Census suffrage versus universal suffrage 107
6.2.3.2.1. Taxpayers and voters 107
6.2.3.2.2. Census suffrage 108
6.2.3.2.3. Universal suffrage 110
6.3. Protecting minorities 112
6.3.1. Counter-majoritarian rules? 112
6.3.2. Allocation of fiscal competences 113
6.3.3. Procedural constraints: Veto players and
supermajorities 114
6.3.4. Material limits to tax legislation 116
6.4. Containing pressure groups 119
6.5. External conflicts 121
6.5.1. Colonial situations 121
6.5.2. EU fiscal discipline 123
6.5.3. Conclusion 125

Chapter 7: No Vote, No Tax!
Taxation and Women’s Suffrage Movements 127
Sigrid Hemels
7.1. Introduction 127
7.2. Background: Legal position of women 127
7.3. John Stuart Mill 128
7.4. Position of married women in tax law 128
7.5. No vote, no tax in the United Kingdom 129
7.6. “No taxation without representation” in the United States 130
7.7. Not on the continent? 133
7.8. Conclusion 134

Chapter 8: EU Taxes and “No Taxation without
Representation” 135
Gianluigi Bizioli
8.1. The approach of the analysis 135
8.2. Three standards for the measuring of democracy 136
8.3. Taxation without representation? 138
8.4. The rule-of-law standard 141
8.5. Which demos? 142
8.6. Conclusion 143

Part Three
National Reports
Chapter 9: Austria 147
Johannes Heinrich and Michaela Pitzer
9.1. Introduction to the tax history of Austria 147
9.1.1. From 1938 until today 147
9.1.2. The period of the 1st Republic and the Ständestaat (1918-1938) 148
9.1.3. Taxes in the Habsburg Empire from the middle of the 18th century to its ending 149
9.1.3.1. Preliminary remarks 149
9.1.3.2. Real estate tax 150
9.1.3.3. Trade tax 152
9.1.3.4. Building tax 153
9.1.3.5. Income tax 154
9.1.3.6. Personal Tax Act of 1896 (Personalsteuergesetz 1896) 155
9.1.3.7. Excise taxes 157
9.1.3.8. Stamp and Tax Act 158
9.1.3.9. Tariffs 158
9.1.4. Tax revenue at the beginning of the 20th century 158
9.2. Repressive taxes 161
9.3. Taxes supporting democracy and those potentially in conflict with democracy 163
9.3.1. Census suffrage 163
9.3.2. Elements of popular participation in the collection of taxes 166
9.3.3. Emancipation of (married) women 169
9.3.4. Equal treatment of income 171
9.4. Conclusion 172

Chapter 10: Belgium 175
Pieter de Reu and Kim van de Velden
10.1. A brief history of Belgian taxation 175
10.1.1. Introduction 175
10.1.2. 1830-1919 175
10.1.3. 1919-present 177
10.2. Repressive taxes 178
10.2.1. World War I: A new taxation culture 178
10.2.2. World War II 179
10.2.3. Repressive taxes that contributed significantly to rebellion and revolution against the regime 180
10.2.3.1. Taxation protest during the 1830 Belgian Secession 180
10.2.3.2. Death duty taxation as a stumbling block (1851) 181
10.3. Taxes supporting democracy and taxes potentially in conflict with it 183
10.3.1. Taxes supporting democracy 183
10.3.1.1. The example of the Parent-Subsidiary Directive 184
10.3.1.2. The introduction of personal income taxes 185
10.3.1.2.1. Scheduled taxes and additional global personal income tax 185
10.3.1.2.2. The income tax reform of 1962 186
10.3.1.3. The effects of the introduction of progressive taxation 187
10.3.1.3.1. The emancipation of (married) women 187
10.3.1.3.2. The equal treatment of income (from capital and from labour) 188
10.3.1.3.3. Income taxation stimuli for the ownership of dwellings 190
10.3.1.4. Fiscal federalism 190
10.3.2. Taxes potentially in conflict with democracy 192
10.3.2.1. EU taxes in relation to “no taxation without representation” 192
10.4. Conclusion 193

Chapter 11: Croatia 195
Hrvoje Arbutina, Nataša Žunić Kovačević and Stjepan Gadzo
11.1. Introduction 195
11.2. Repressive taxes 199
11.2.1. Taxation in national-socialist and fascist regimes: The “Independent State of Croatia” 199
11.2.2. Taxation in communist regimes: “The Second Yugoslavia” 201
11.3. Taxes supporting democracy 205
11.3.1. Personal income tax 205
11.3.2. Fiscal federalism 209
11.4. Taxes potentially in conflict with democracy (especially with the principle of “no taxation
without representation”) 213
11.4.1. Taxes introduced as a consequence of the financial crisis in countries that were under the severe control
of the “Troika” (the IMF, European Commission and European Central Bank) 213
11.4.2. EU-related taxes in relation to “no taxation without representation” 217
11.4.3. Other taxes potentially in conflict with “no taxation without representation” 218
11.5. Conclusion 219

Chapter 12: Czech Republic 221
Michal Radvan, Petra Hrubá Smržová (Jánošíková) and Radim Boháč
12.1. Introduction to the history of taxation in the Czech Republic 221
12.2. Repressive taxes 224
12.2.1. Taxation in national-socialist and fascist regimes (the Protectorate of Bohemia and Moravia, 1939-1945) 224
12.2.2. Taxation in communist regimes 226
12.2.3. Other repressive taxes 232
12.2.4. Repressive taxes that contributed significantly to rebellion and revolution against the regime 233
12.3. Taxes supporting democracy and taxes potentially in conflict with democracy 234
12.3.1. Taxes supporting democracy 234
12.3.2. Fiscal federalism 236
12.3.3. Taxes potentially in conflict with democracy 238
12.3.3.1. Taxes introduced as a consequence of the financial crisis of 2008 in countries that were under severe control of the troika 238
12.3.3.2. EU-related taxes in relation to “no taxation without representation” 238
12.3.3.3. Other taxes potentially in conflict with “no taxation without representation” 239
12.4. Conclusion 240

Chapter 13: Denmark 243
Jacob Graff Nielsen, Peter Koerver Schmidt and Helle Vogt
13.1. Introduction to the tax history of Denmark 243
13.2. Repressive taxes 248
13.2.1. Danish taxation and the World Wars 248
13.2.2. Repressive taxes contributing to rebellion and revolution 249
13.3. Taxes supporting democracy and taxes potentially in conflict with democracy 250
13.3.1. Taxes supporting democracy 250
13.3.1.1. Introduction of personal income taxes related to the emancipation of citizens 250
13.3.1.1.1. The long run-up to the introduction of personal income taxes 250
13.3.1.1.2. Universal suffrage and taxation 253
13.3.1.1.3. The emancipation of women and taxation 254
13.3.1.1.4. The effects of the introduction of personal income taxes 257
13.3.1.1.5. The equal treatment of income (from capital and labour) 260
13.3.1.2. Fiscal federalism 261
13.3.2. Discussions concerning Denmark’s membership of the European Union 261
13.4. Conclusion 262

Chapter 14: Finland 263
Leila Juanto and Esko Linnakangas
14.1. Introduction to Finnish tax history 263
14.2. Repressive taxes 265
14.2.1. National Socialism and fascism in Finland 265
14.2.2. Communism in Finland 266
14.2.3. Other types of repressive taxes in Finland 267
14.3. Tax legislation 267
14.4. Democracy and taxes 269
14.4.1. Development of the income tax system 269
14.4.1.1. The relationship between the payment of taxes and the right to vote 269
14.4.1.2. Redistribution of income, progressive taxation and social tax deductions 269
14.4.1.3. Neoliberalism, broadening of the tax base and direct subsidies and flat tax 270
14.4.1.4. The role of women in taxation 271
14.4.1.5. Abolition of wealth tax 272
14.4.1.6. Favouring owner-occupied housing 272
14.4.1.7. Tax treatment of labour market organizations and their membership fees 272
14.4.2. Distribution of taxes nationally and supranationally 273
14.4.2.1. Municipalities and counties 273
14.4.2.2. European Union 274
14.4.3. Anti-democratic taxation 274
14.4.3.1. Taxes resulting from financial crisis 274
14.4.3.2. EU taxes 274
14.5. Conclusion 275

Chapter 15: France 277
Emmanuel de Crouy-Chanel
15.1. Introduction 277
15.2. Introduction to the tax history of France 277
15.2.1. Taxation and the modern sovereign state 278
15.2.2. Taxation and nation 279
15.2.3. Taxation and the Republic 282
15.3. Repressive taxes 284
15.3.1. Taxation in national-socialist and fascist regimes 284
15.3.2. Other repressive taxes 287
15.3.2.1. Foreign repressive taxation applied in France 287
15.3.2.2. Colonial taxation 288
15.3.3. (Repressive) taxes that contributed significantly to rebellion and revolution against the regime
(often caused by the violation of the principle of “no taxation without representation”) 289
15.4. Taxes supporting democracy and taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 290
15.4.1. Taxes supporting democracy 290
15.4.1.1. Introduction of personal income tax 290
15.4.1.2. Fiscal federalism 291
15.4.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 292
15.4.2.1. EU-related taxes in relation to “no taxation without representation” 292
15.4.2.2. Other taxes potentially in conflict with “no taxation without representation” 293
15.5. Conclusion 293

Chapter 16: Germany 303
Christine Osterloh-Konrad and Korinna Schönhärl
16.1. Introduction to German tax history 303
16.2. Repressive taxes 304
16.2.1. Repressive or confiscatory taxes 304
16.2.1.1. Taxation under the National Socialist regime (1933-1945) 305
16.2.1.2. Taxation in the German Democratic Republic 308
16.2.2. Repressive taxes that have contributed significantly to rebellion and revolution against the regime 311
16.2.2.1. Rare examples of open tax resistance in Germany 311
16.2.2.2. Judicial review and tax resistance 313
16.3. Taxes supporting democracy and taxes potentially in conflict with democracy 313
16.3.1. Taxes supporting democracy 314
16.3.1.1. Introduction of personal income taxes related to the emancipation of citizens 314
16.3.1.1.1. Prussian nobles’ resistance against tax law modernization in the 19th century 314
16.3.1.1.2. Direct property taxes in southern Germany in the 19th century 316
16.3.1.1.3. Miquel’s tax reform of 1891: The introduction of the income tax in Prussia 317
16.3.1.1.4. The Erzberger reforms during the Weimar republic: Towards a modern tax system 318
16.3.1.1.5. Conclusions 320
16.3.1.2. Fiscal federalism 320
16.3.1.2.1. Fiscal federalism in the German Empire 320
16.3.1.2.2. Fiscal federalism between 1919 and 1945 321
16.3.1.2.3. Fiscal federalism after World War II 321
16.3.1.2.4. Conclusion 322
16.3.2. Taxes potentially in conflict with democracy 323
16.3.2.1. EU-related taxes 323
16.3.2.2. Other taxes potentially in conflict with “no taxation without representation” 323
16.3.2.2.1. Taxes during the occupation by the Allied forces after World War II 323
16.3.2.2.2. Influences of international tax competition on domestic tax law 324
16.4. Conclusion 325

Chapter 17: Greece 327
Petros Pantazopoulos
17.1. Introduction to the tax history of Greece 327
17.1.1. The 1821 Revolution and the emergence of the modern Greek state 327
17.1.2. The tax system during the period of Ottoman rule 327
17.1.3. The constitutional enshrinement of rules regarding the operation of the state 328
17.1.4. Enshrinement of constitutional rules to regulate taxation 329
17.1.5. Developments in the Greek tax system 330
17.2. Repressive taxes 332
17.2.1. Taxation in national socialist and fascist regimes 332
17.2.1.1. The Metaxas regime 332
17.2.1.2. The German occupation 334
17.2.2. The Colonels’ Junta (1967-1974) 336
17.3. Taxes supporting democracy and taxes potentially in conflict with democracy 339
17.3.1. Taxes supporting democracy 339
17.3.1.1. Introduction of personal income taxes related to the emancipation of citizens 339
17.3.1.1.1. The introduction of personal income tax in Greece 339
17.3.1.1.2. The relationship between women as taxable persons for income tax purposes and the granting of voting
rights 340
17.3.1.1.3. The impact of the introduction of income tax on the redistribution of income 341
17.3.1.1.4. The position of women in the tax system 342
17.3.1.1.5. The tax system’s effect on the acquisition of real estate property 344
17.3.1.2. Fiscal federalism 345
17.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 345
17.3.2.1. Taxes introduced as a consequence of the financial crisis in countries that were under the severe control of the troika 345
17.3.2.1.1. Greece’s placement under the supervision of the troika 345
17.3.2.2. EU taxes relating to “no taxation without representation” 347
17.4. Conclusion 348

Chapter 18: Hungary 349
István Simon
18.1. Introduction to the tax history of Hungary 349
18.1.1. Political milestones 349
18.1.2. A short history of taxation 351
18.2. Repressive taxes 354
18.2.1. Preliminary considerations in respect of repressive taxation 354
18.2.2. The interwar period and World War II 354
18.2.3. The communist era in Hungary 356
18.2.4. Other repressive taxes 363
18.2.5. Taxes, confiscations in the Habsburg era and the Trianon Treaty 364
18.3. Taxes supporting democracy and taxes potentially in conflict with democracy 365
18.3.1. Taxes supporting democracy 365
18.3.2. Introduction of the personal income tax 365
18.3.3. Tax reform in 2010 – flat tax can support democracy in the given conditions 366
18.3.4. Social security 369
18.3.5. Taxes potentially in conflict with democracy – partly avoided 370
18.4. Conclusion 371

Chapter 19: Ireland 373
Emer Hunt, Peter Clarke and Gerardine Doyle
19.1. Historical development of the Irish taxation system 373
19.1.1. Introduction 373
19.1.2. The Irish taxation system before the Napoleonic Wars 375
19.1.3. The introduction of income tax in Ireland 376
19.1.4. Tax developments in the Irish Free State (1922 onwards) 379
19.2. Taxes supporting democracy and taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 382
19.2.1. Introduction 382
19.2.2. Taxes supporting democracy 384
19.2.2.1. Introduction of personal income taxes related to emancipation of citizens 387
19.2.2.1.1. Taxation of women 387
19.2.2.1.2. Taxation of wealth and capital 389
19.2.2.2. Fiscal federalism 390
19.2.3. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 390
19.2.3.1. Introduction 390
19.2.3.2. Taxes introduced as a consequence of the financial crisis in countries that were under severe control of the troika (IMF, European Commission and European Central Bank) 391
19.2.3.3. EU-related taxes in relationship to “no taxation without representation” 393
19.2.3.4. Other taxes potentially in conflict with “no taxation without representation” 394
19.3. Conclusion 395

Chapter 20: Italy 397
Maria Cecilia Fregni
20.1. Introduction to Italy’s tax history 397
20.2. Repressive taxes: Taxation in a fascist regime 399
20.3. Taxes supporting democracy 407
20.3.1. Introduction of IRPEF 407
20.3.2. Fiscal federalism 409
20.4. Taxes potentially in conflict with democracy: EU-related taxes in relation to “no taxation without representation” 415
20.5. Conclusion 417

Chapter 21: Japan 419
Yuri Matsubara
21.1. Introduction to the tax history 419
21.1.1. Ancient period and Middle Ages (7th century15th century) 419
21.1.2. Early modern period (1573-1868) 421
21.1.2.1. Land surveying 421
21.1.2.2. Other taxes: History of miscellaneous taxes (including enterprise tax) in the Middle Ages 422
21.1.3. Land and tax reform under the Meiji Restoration (1867-1881) 423
21.1.3.1. Overview 423
21.1.3.2. Other taxes: History of enterprise (profit) tax in the modern era (1868-1949) 424
21.1.4. The process of enacting the Imperial Constitution (1871-1890) and tax provisions/statutes 426
21.2. Repressive taxes 429
21.2.1. Repressive taxes (predominantly meant to maintain and increase the power of the regime, suppress enemies of the regime and prevent unwanted social reforms) 429
21.2.1.1. Taxation in National Socialist and fascist regimes (1919-1945) 429
21.2.2. Repressive taxes that contributed significantly to rebellion and revolution against the regime (often caused by the violation of the principle of “no taxation without representation”) 432
21.3. Taxes supporting democracy and taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 434
21.3.1. Taxes supporting democracy 434
21.3.1.1. Introduction of personal income taxes related to emancipation of citizens 434
21.3.1.2. Fiscal federalism 435
21.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 435
21.3.3. Other taxes potentially in conflict with “no taxation without representation” 436
21.4. Conclusion 437

Chapter 22: Latvia 439
Janis Neimanis
22.1. Tax history of Latvia 439
22.1.1. Ancient territories of Latvia 439
22.1.2. 13th-16th centuries 440
22.1.3. 16th-17th centuries 441
22.1.4. 18th century 444
22.1.5. 19th century 444
22.1.6. World War I 448
22.1.7. Republic of Latvia (1918-1940) 449
22.1.7.1. Latvian Socialistic Soviet Republic 450
22.1.7.2. Internationally recognized Republic of Latvia (1920-1940) 451
22.1.8. Occupied Latvia (1940-1991) 453
22.1.8.1. First year of Soviet occupation 453
22.1.8.2. Occupation by Nazi Germany (1941-1945) 455
22.1.9. Post-war period: Soviet occupation (1944-1990) 456
22.1.10. After the restoration of independence 458
22.2. Non-democratic (dictatorial) taxes (overview) 467
22.3. Taxes supporting democracy and the rule of law (overview) 468
22.4. Taxes threatening democracy and the rule of law (overview) 469

Chapter 23: Netherlands 471
Onno Ydema, Sigrid Hemels and Sonja Dusarduijn
23.1. Introduction 471
23.2. The tenth penny of the Grand Duke of Alba 471
23.3. Taxes supporting democracy, the introduction of income taxes: The 1892/1893 Dutch tax reform of Nicolas Pierson 476
23.4. Repressive taxes: Dutch tax law under the National Socialist regime (1940-1945) 479
23.4.1. Previously 480
23.4.2. The beginning 481
23.4.3. Some reforms exposed 481
23.4.4. Aims of reform 482
23.4.4.1. Substantial increase of tax proceeds 482
23.4.4.2. Integration of ideology 483
23.4.5. Concluding 484
23.5. Personal income taxes and the emancipation of citizens 485
23.5.1. Married women 485
23.5.2. Unmarried citizens 488
23.6. Conclusion 489

Chapter 24: Norway 491
Harald Espeli
24.1. From municipal independence to complete state control of direct taxation: Norwegian taxation history since 1814 491
24.1.1. Introduction 491
24.1.2. Repressive taxation during the German occupation and the Quisling regime (1940-1945) 493
24.2. Tax protests and violations of the principle of “no taxation without representation” 495
24.3. Introduction and development of income and wealth taxation 497
24.3.1. The first modern tax laws of 1882 498
24.3.2. The tax reforms of 1911 and 1921 499
24.3.3. A system of high nominal tax rates and new goals for tax policy (1940-1992) 501
24.3.4. 1992 tax reform 502
24.4. Taxation of married women 503
24.5. From equal taxation of tenants and owners of dwellings to massive tax advantages for the latter 505
24.6. Fiscal federalism 506
24.7. Resource rent taxation on waterfalls and petroleum extraction 506
24.8. Transparency of tax assessment, tax complaints and the rule of law 508
24.9. Conclusion 510

Chapter 25: Poland 513
Ziemowit Kukulski, Małgorzata Sęk, Michał Wilk and Edgar Drozdowski
25.1. Introduction to the tax history of Poland 513
25.2. Repressive taxes 517
25.2.1. Taxation during the national-socialist regime 517
25.2.2. Taxation during the communist regime 518
25.3. Taxes supporting democracy and taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 519
25.3.1. Taxes supporting democracy 519
25.3.1.1. The Second Polish Republic (1918-1939) 519
25.3.1.1.1. The unification of tax systems 519
25.3.1.1.2. Tax Ordinance 521
25.3.1.1.3. State income tax 522
25.3.1.2. Transition from communism to democracy (The Third Republic) 524
25.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 527
25.3.2.1. EU-related taxes in relationship to “no taxation without representation” 527
25.3.2.2. Other taxes potentially in conflict with “no taxation without representation” 529
25.4. Conclusion 529

Chapter 26: Portugal 531
Rita Calçada Pires and Marta Carmo
26.1. A first approach: Portuguese tax history and political power 531
26.2. Key facts throughout Portuguese tax history 533
26.2.1. Repressive taxes before the 20th century 533
26.2.1.1. Taxes to maintain and increase power 533
26.2.1.2. Early discriminatory taxation: Jews, Muslims and slaves 535
26.2.2. Taxation in the new state/Salazarist regime 536
26.3. Taxes supporting democracy: The contemporary Portuguese tax system 538
26.3.1. Introduction of personal income taxes and other reforms 538
26.3.2. Fiscal federalism 541
26.4. Potential clashes: Questioning some types of contemporary taxation instruments 542
26.4.1. Taxes introduced as a consequence of the financial crisis and the troika Memorandum of Understanding 542
26.4.2. Other contemporary contributions that present many doubts: Economic sectorial financial contributions and multiplication of fees 546
26.4.3. Is there a “pop tax” movement in Portugal? 550
26.5. Main conclusions: What may tax history anticipate? 553

Chapter 27: Serbia 557
Dejan Popović and Svetislav V. Kostić
27.1. Introduction to the tax history of Serbia 557
27.2. Repressive taxes 564
27.2.1. Taxation in national-socialist and fascist regimes 564
27.2.2. Taxation in communist regimes 567
27.2.3. Other repressive taxes 569
27.2.4. Repressive taxes that have contributed significantly to rebellion and revolution against the regime 570
27.2.4.1. Mileta’s rebellion 571
27.2.4.2. Cazin rebellion 572
27.3. Taxes supporting democracy and taxes potentially in conflict with democracy 573
27.3.1. Taxes supporting democracy 573
27.3.1.1. Introduction of personal income taxes related to the emancipation of citizens 573
27.3.1.2. Fiscal federalism 577
27.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 580
27.4. Conclusion 580

Chapter 28: Slovakia 583
Miroslav Štrkolec, Anna Vartašová and Jozef Sábo
28.1. Introduction to the tax history of Slovakia 583
28.2. Repressive taxes 584
28.2.1. Taxation in national socialist and fascist regimes 584
28.2.2. Taxation in communist regimes 588
28.2.3. Repressive taxes that have contributed significantly to rebellion and revolution against the regime 592
28.3. Taxes supporting and potentially in conflict with democracy 594
28.3.1. Taxes supporting democracy 594
28.3.1.1. Introduction of personal income tax related to the emancipation of citizens 594
28.3.1.2. Fiscal federalism 598
28.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 602
28.3.2.1. EU-related taxes in relation to “no taxation without representation” in Slovakia 602
28.3.2.2. Other taxes potentially in conflict with “no taxation without representation” 603
28.4. Conclusion 604

Chapter 29: Spain 607
Ricardo García Antón and César Martínez Sánchez
29.1. Introduction to Spanish tax history 607
29.2. Repressive taxes in Spain 611
29.2.1. Taxation in the regime led by General Francisco Franco 611
29.2.2. Repressive taxes that have contributed significantly to rebellion and revolution against the regime 615
29.2.2.1. Revolt of the Comuneros (1520-1521) 615
29.3. Taxes supporting democracy and taxes potentially in conflict with democracy in the Post-Franco period (1977-2020) 618
29.3.1. The need for progressive taxes and wealth redistribution to ensure democracy 619
29.3.2. Decentralization indissolubly linked to Spanish democracy 622
29.3.3. Taxes threatening democracy 626
29.3.3.1. Threats on the revenue side 627
29.3.3.2. Threats on the expenditure side 628
29.4. Conclusion 630

Chapter 30: Sweden 633
Katarina Fast Lappalainen, Peter Melz and Mauro Zamboni
30.1. Introduction to the tax history of Sweden 633
30.1.1. Introduction 633
30.1.2. The development of taxation and in particular the principle of “no taxation without representation”, 1319-1921 634
30.1.2.1. The Liberty Letter of 1319 and the principle of consent 634
30.1.2.2. Effective monitoring of the population for tax purposes (1520s to 1809) 635
30.1.2.3. The Age of Liberty and the Constitution of 1809 637
30.1.3. Taxation, industrialization and democratization 639
30.1.4. Participation in tax legislation 640
30.2. Repressive taxes 641
30.2.1. General overview 641
30.2.1.1. The Protestant Reformation 641
30.2.1.2. Fiscal problems during the Swedish Empire 642
30.2.1.3. Fjärdepartsräfsten 643
30.2.1.4. The great reduction 644
30.2.1.5. Conclusions 645
30.2.2. Repressive taxes that have contributed significantly to rebellion and revolution against the regime (often caused by the violation of the principle of “no taxation without representation”) 645
30.2.2.1. The Engelbrekt feud 646
30.2.2.2. The Dacke feud 646
30.2.3. The estate tax debate 647
30.2.4. The Pomperipossa debate 648
30.2.5. The debate regarding employee investment funds 649
30.2.6. The one-off property tax debate 650
30.3. Taxes supporting democracy and taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 651
30.3.1. Taxes supporting democracy 651
30.3.1.1. Introduction of personal income taxes related to the emancipation of citizens (relationship with, e.g., abolishment of census suffrage, taxation of rich versus poor, man versus woman, capitalists versus workers) 651
30.3.1.2. Fiscal federalism 652
30.3.2. Taxes potentially in conflict with democracy (especially with the principle of “no taxation without representation”) 653
30.3.3. EU-related taxes in relationship to “no taxation without representation” in Sweden 654
30.4. Conclusion 655

Chapter 31: Switzerland 657
Gisela Hürlimann
31.1. Introduction 657
31.1.1. Taxation in the Old Swiss Confederation (prior to 1800) 658
31.1.1.1. Urban and rural taxation up to the 16th century 659
31.1.1.2. Reformation, state revenue, fiscal extraction and resistance up to the 18th century 661
31.2. Main tax reforms between 1798 and 1915 663
31.2.1. The Helvetic Republic: First attempts at central taxation 664
31.2.2. Cantonal tax sovereignty after 1803 and the slow generalization of direct taxes 665
31.2.3. The Swiss federal state, its fiscal policy and impacton cantonal taxation (1848-1915) 668
31.2.4. Swiss taxation since World War I 670
31.2.4.1. In and between the wars: The evolution of Swiss taxation (1915-1945) 670
31.2.4.2. The post-war path of federal taxation (1948-2020) 674
31.3. Conclusion 679

Chapter 32: Turkey 681
Funda Başaran Yavaşlar, Gülsen Güneş, Fatma Gül Karagöz and Sevtap Metin
32.1. Introduction to the tax history of Turkey 681
32.1.1. The traditional society 681
32.1.2. The Ottoman modernization 682
32.1.3. The rise of the republic 683
32.1.4. The introduction of a multi-party system 683
32.2. Repressive taxes 684
32.2.1. Repressive taxes in the 20th century 684
32.2.1.1. Repressive taxes and applications during World War II 684
32.2.1.1.1. A repressive tax inherited from the empire: Road taxes 684
32.2.1.1.2. A repressive tax on wealth: Varlık Vergisi (capital tax) 684
32.2.1.1.3. A repressive tax on income: Toprak Mahsulleri Vergisi (tax on agricultural products) 686
32.2.1.2. Regulations facilitating repressive tax regulations after military interventions in 1971 and 1982 687
32.2.2. Repressive taxes that have contributed significantly to rebellion and revolution against the regime 688
32.2.2.1. Problems before modernization 688
32.2.2.2. Problems during modernization after the Imperial Rescript of Gülhane of 1839 690
32.2.2.2.1. Uprisings in the Balkans and the road to the Constitution of 1876 690
32.2.2.2.2. 1841 Niš uprising 691
32.2.2.2.3. 1847 Toskalik Rebellion in Albania 691
32.2.2.2.4. 1875 Herzegovina Rebellion 691
32.2.2.2.5. Tax rebellions in Anatolia 692
32.3. Taxes supporting democracy and taxes potentially in conflict with democracy in Turkey 694
32.3.1. Taxes supporting democracy 694
32.3.1.1. During the rise of the Turkish republic 694
32.3.1.1.1. A tax supporting democracy and independence: The Tekâlif-i Milliye Orders 694
32.3.1.1.2. Abolishment of aşar (tithe) 695
32.3.1.2. Introduction of personal income taxes 695
32.3.1.3. Fiscal federalism 697
32.3.2. Taxes potentially in conflict with democracy 698
32.3.2.1. Taxes influenced by external forces as a consequence of financial crisis 698
32.3.2.1.1. Ottoman period 698
32.3.2.1.2. Republic period 699
32.3.2.2. Other taxes potentially in conflict with equality and legality 700
32.4. Conclusion 701

Chapter 33: United Kingdom 705
Katherine Cousins and Dominic de Cogan
33.1. Introduction to the tax history of the United Kingdom 705
33.2. Repressive taxes 710
33.3. Taxes supporting democracy and taxes potentially in conflict with democracy 712
33.3.1. Taxes supporting democracy 713
33.3.1.1. The introduction of personal income tax 713
33.3.1.2. Fiscal federalism 716
33.3.2. Taxes in conflict with democracy 718
33.4. Conclusion 722

Chapter 34: United States 725
William B. Barker
34.1. Introduction 725
34.2. From colonial America to the birth of a new nation: Taxation and revolution 727
34.2.1. No taxation without representation 727
34.2.1.1. The Stamp Act 727
34.2.1.2. Townshend Acts 728
34.3. The shift from the control of “foreign” imperialism to control by class and faction in US taxation 730
34.3.1. The context of US federalism 730
34.3.2. Shay’s Rebellion 731
34.3.3. The Whiskey Rebellion 732
34.3.4. The right to vote and taxation 734
34.4. The struggle for a national income tax: Classes and regions in conflict 737
34.4.1. Income tax in the United States: Early history 737
34.4.2. The mobilization of income taxation 738
34.4.3. The US Supreme Court invalidates the income tax 739
34.4.4. Pollock’s aftermath 741
34.5. The dialectics of change: Internal contradictions at the core of class power over the economic effect of income tax 745
34.6. Conclusion 748

Part Four
Appendix
Appendix: Questionnaire for National Reports 753