According to Schumpeter the main symptoms of the crisis in themodern tax state emanate from the prevailing tax structure rooted in thesocial values of the late 19th century. If we want the tax system toremain a successful instrument of public policy, we need to reform it sothat it creates equal opportunities. Positive effects enhance anincrease in tax yields. If present tax receipts could be augmented, thebudget deficit could be reduced and debt creation would be restrained,lessening the financial pressure on future generations. In explainingthe deficit, the public revenue side is considered together with thepublic expenditure side.
Journal of Economic Studies – Emerald Publishing
Published: May 1, 1991
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