
Social
scientists teach that politicians favor groups that are organized over
those that are not. Representation through Taxation
challenges this conventional wisdom. Emphasizing that there are
limits to what organized interests can credibly promise in return for
favorable treatment, I show that politicians may instead give preference
to groups – organized or not
– that by their nature happen to take
actions that are politically valuable.
I develop this argument in the context of the postcommunist experience,
focusing on the incentive of politicians to promote sectors that are
naturally more tax compliant, regardless of their organization. In
the former Soviet Union, tax systems were structured around familiar
revenue sources, magnifying this incentive and helping to prejudice policy
against new private enterprise. In Eastern Europe, in contrast, tax
systems were created to cast the revenue net more
widely, encouraging politicians to provide
the collective goods necessary for new firms to flourish.
AAASS Davis Center Book Prize in Political and Social Studies (for an outstanding monograph published on Russia, Eurasia, or Eastern Europe in anthropology, political science, sociology, or geography),
honorable mention.
Cambridge Studies in Comparative Politics,
2008.
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