Political transition and fiscal transition in Spain

Summary, in English

After the tax reform undertaken in Spain between 1977 and 1986, the practical results in terms of progressivity and redistribution were not outstanding. Inequality did not significantly decrease after the transition to democracy, as political economy literature would suggest. In recent times, the system has shown its incapacity to sustain European-level welfare services. But why?

This paper analyses the main contenders which might explain the issue: ideologies and the decision-making institutions. Perhaps the general citizen – or the decisive voter – was not so keen on redistribution. Alternatively, the political system may not translate effectively the public stances onto policies. Some of these elements were significantly modified during the political transition. Others were affected by international developments, such as the general change of emphasis from equity to efficiency in tax system design, and the higher capacity of capital to escape from taxation, by means of mobility.

• Author: Sara Torregrosa Hetland
• Department/s: Department of Economic History
• Publishing year: 2015
• Language: English
• Links: http://dx.doi.org/10.13140/RG.2.1.2382.5368
• Document type: Conference paper
• Topic: Economic History
• Keywords: redistribution; tax reform; Public policy
• Conference name: XVIIth World Economic History Congress, 2015
• Conference date: 2015-08-03 - 2015-08-07
• Conference place: Kyoto, Japan
• Status: Unpublished