The Spanish Fiscal Transition

This book provides an analysis of the process and outcomes of the tax reform, with a focus on progressivity, redistribution, and inequality.

The Spanish Fiscal Transition

This book provides an analysis of the process and outcomes of the tax reform, with a focus on progressivity, redistribution, and inequality. Between 1977 and 1986, Spain underwent a comprehensive tax reform which shaped its fiscal system until today. It was made in connection with the transition to democracy and indeed was understood as a fundamental part of the political change. The book situates the reform both within Spanish history and international trends in tax systems and connects it to the expansion of the welfare state and regional decentralization in Spain. The analysis reveals that the tax system failed to attain progressivity, and significant levels of fraud had a noticeable impact on inequality. Because of this, fiscal redistribution remained limited. In the new political economy of the second globalization, late democratic and fiscal transitioners were unable to emulate the path of the welfare state forerunners.

Tax System and Redistribution the Spanish Fiscal Transition 1960 1990

To some extent, this story might also fit other countries in the European periphery, adding a new category to the international discussion on regressive taxation and welfare state development.

Tax System and Redistribution  the Spanish Fiscal Transition  1960 1990

This thesis analyses the Spanish tax system between 1960 and 1990, with special attention to the developments in progressivity, redistribution and inequality. It addresses the reforms that took place during the transition to democracy, providing a quantitative joint assessment which was missing in the literature. Because of the long dictatorship suffered by the country between 1936/39 and 1976, Spain was a laggard in abandoning the traditional liberal forms of taxation in favour of 20th century tax ideas. Taxes were low, regressive and inefficient during these decades, and the welfare state seeds were kept underdeveloped. During the sixties, public finance scholars envisaged the introduction of the 'European' model, but such a reform could not make it through under Francoism. As democracy returned, the new government soon passed several tax measures which meant to make the system progressive, efficient and able to raise higher revenue. This would bring the country into convergence with its European neighbours, allowing integration in the European Economic Community and the development of a modern welfare state. The main milestones were the introduction of a personal income tax (1979) and a value added tax (1986). But, during the following decades, social contributions kept being the single most important public revenue source, and high tax evasion persisted as one of the main unresolved problems signalled by experts. These elements sustain the initial hypothesis of a proportional or still regressive tax system after the reforms — which would contradict simple political economy models in the literature, were democratization redistributes political and economic power. Our guiding research questions thus are: Did the tax system become (more) progressive? Did it reduce income inequality in the country? And what was the evolution of tax evasion and its incidence on different income levels? The empirical work is mainly based on Household Budget Surveys, tax revenue data and statistics of tax burden distribution, which are critically treated and adjusted. Methodological innovations include a proposal for correction of biases in household survey data and an addition to Feldman and Slemrod (2007)'s method for estimating fraud in different income sources, by introducing a correction for sample selection. The calculations of the distribution of the tax burden underline the joint consideration of total taxation, including consumption taxes, which are often neglected in related work. The main results of the thesis are a considerable persistence in inequality levels (contrary to theoretical expectations and the conclusions of previous literature), the negative impact of taxation on the income distribution still after the reforms (while funding progressive social expenditure), and the severe and regressive incidence of tax evasion and base voidening in the personal income tax. The levels of tax-and-transfer redistribution attained in Spain throughout this period did not converge to those of other western countries. The author's interpretation concludes that demands for progressive taxation were constrained by both domestic political institutions –with a bias for representation of center-right interests–, and a new international political economy. The combination of sluggish growth, economic openness and neo-liberal theory made progressive taxes harder to defend and implement. This, in turn, limited the state's redistributive capacity. To some extent, this story might also fit other countries in the European periphery, adding a new category to the international discussion on regressive taxation and welfare state development. Welfare state laggards initially resorted to similar strategies to those used earlier by the leaders. But lower revenue from personal taxes, higher levels of inequality, and slow growth impeded the establishment of highly redistributive tax-and-transfer systems.

A Fiscal Revolution Progressivity in the Spanish Tax System 1960 1990

In this work I analyze whether the reforms entailed effective changes in the distribution of the tax burden, by imputing tax collection to taxpayers, based on income and consumption micro-data from Household Budget Surveys.

A Fiscal Revolution  Progressivity in the Spanish Tax System  1960 1990

The main objective of this paper is to calculate the distribution of the tax burden across income levels in Spain between 1960 and 1990. The chosen period covers the final years of Franco's dictatorship and the first ones of the present parliamentary regime, and is thus meant to explore how political change was reflected on taxation. Does transition entail a fiscal revolution? Here is one case study developed and compared to other national experiences. Effective tax reform seems to have been politically blocked during the dictatorship, with public budgets growing fundamentally on the grounds of social security contributions. Democracy brought about a comprehensive transformation starting in 1977, which aimed at improving fairness (progressivity) and increasing revenue (to fund the development of the Welfare State). In this work I analyze whether the reforms entailed effective changes in the distribution of the tax burden, by imputing tax collection to taxpayers, based on income and consumption micro-data from Household Budget Surveys. The results show a persistent (albeit decreasing) regressivity in the tax system, which caused an increasingly negative redistribution of income. Pre-Tax incomes grew unequal during the period and net incomes even more so as a result: the tax reform did not fulfill its equalizing promises. The joint effect of the fiscal system, however, seems to have been slightly positive due to progressive social spending.

Worlds of Taxation

Insights from the Spanish Tax System (1960–1990). European Review of Economic History 3 (19): 294–315. ———. 2016. Sticky Income Inequality in the Spanish Transition (1973–1990). Revista de Historia Económica/Journal of Iberian and Latin ...

Worlds of Taxation

This book provides a historical understanding of current debates over tax reform and offers a comparative framework for discussing the relationship between fiscal policy and the distribution of income and wealth. Topics covered include the evolution of income taxation since World War II; the turn toward value added taxation; the relationship between tax reform and the construction of welfare states; the impact of globalization on tax and fiscal policy; the social forces shaping tax consent; and the political economy of tax and fiscal reform. These topics are covered in case studies that focus on significant episodes in the fiscal history of Denmark, Sweden, France, Greece, the United Kingdom, Spain, Switzerland, the United States, and Japan.

The Order of Economic Liberalization

New to this edition are chapters that contrast the gradual Chinese approach to liberalizing domestic and foreign trade with the "big bang" approach followed by some Eastern European countries and republics of the former Soviet Union.

The Order of Economic Liberalization

Can knowledge of financial policies in developing countries over four decades help the socialist economies of Asia and Eastern Europe become open market economies in the 1990s? In all these countries the loss of fiscal and monetary control has often resulted in high inflation that undermines the liberalization process itself. In the second edition of The Order of Economic Liberalization, Ronald McKinnon builds on his influential work on the liberalization of financial markets in less developed countries and outlines the progression necessary to move from a "repressed" to an open economy. New to this edition are chapters that contrast the gradual Chinese approach to liberalizing domestic and foreign trade with the "big bang" approach followed by some Eastern European countries and republics of the former Soviet Union. Financial control and macroeconomic stability, McKinnon argues, are more critical to a successful transition than is any crash program to privatize state-owned industrial assets and the banking system.

Comparing Fiscal Federalism

For a critical view of the fiscal asymmetry resulting from the foral system, see T. Garcia-Milà and T.J. McGuire, “Fiscal Decentralization in Spain: An Asymmetric Transition to Democracy”, in Bird and Ebel, ...

Comparing Fiscal Federalism

Comparing Fiscal Federalism investigates intergovernmental financial relations and the current allocation of financial and fiscal powers in compound states from a comparative and interdisciplinary perspective. Theoretical approaches and case studies provide a comprehensive analysis of recent developments and emerging trends.

Combined Statement of Receipts Expenditures and Balances of the United States Government

Transition Quarter . ... Preparedness Activities : Salaries and Expenses , Federal Preparedness Agency : Fiscal Year 1976 ... Transition Quarter . ... Cabinet Committee on Opportunities for Spanish - Speaking People : Fiscal Year 1976 .

Combined Statement of Receipts  Expenditures and Balances of the United States Government


Game Theory and the Transition to Democracy

This book sheds new light on the process of transition to democracy and will be welcomed by historians and political scientists both as a key contribution to the historical understanding of the period and as a seminal application of ...

Game Theory and the Transition to Democracy

The transition to Spanish democracy is often seen as a model for other societies undergoing processes of political change; an example of negotiation and consensus which avoids both violence and civil war. Game Theory and the Transition to Democracy analyses strategic behaviour and political interactions during the key political episodes in the Spanish transition, explaining why it was such a successful process. Emphasising the agenda-setting, bargaining and strategic decision-making roles of central actors, this book uses a rational choice methodology to model the transition to democracy in Spain. This book sheds new light on the process of transition to democracy and will be welcomed by historians and political scientists both as a key contribution to the historical understanding of the period and as a seminal application of rational choice analysis.

Europe Today

Yet all this came to a halt when the global financial crisis hit Spain in 2008. As a result, Spain is suffering one of the worst crises since the 1940s. Following the transition to democracy and the country's European integration, ...

Europe Today

Now in its fifth edition, Europe Today presents unrivaled coverage of developments in major European countries and across the region. Thoroughly revised and updated—with a new introduction and an added chapter on Spain—this is the only work that offers a sustained and unified set of both country case studies and thematic chapters on the European Union. Written by leading scholars from Europe and North America, the book offers a range of perspectives on the process of European integration, the evolution of economic performance, the spread of judicial authority, and the reaction to multiculturalism and immigration. Highlighting the impact of the global economic crisis and the struggle to assert Europe’s voice more widely, the contributors provide a cosmopolitan and pragmatic assessment of what Europeans have accomplished and what challenges they continue to face. Each chapter builds on a foundation of basic political information and explanation to develop distinctive and thought-provoking contributions to current debates. A book that informs but also engages, this comprehensive text will lead readers toward a coherent and informed view of Europe today. Contributions by: Gianfranco Baldini, Simon Duke, Eric S. Einhorn, Gregory W. Fuller, Gabriel Goodliffe, Roberta Haar, Jonathan Hopkin, Erik Jones, R. Daniel Kelemen, Serhiy Kudelia, Benedicta Marzinotto, Jonathon W. Moses, Bruce Parrott, Sebastián Royo, Kate Alexander Shaw, Ben Stanley, Ronald Tiersky, John Van Oudenaren, and Helga A. Welsh

Spain s Transition To Democracy

"La alternativa defensor del pueblo—Ministerio Fiscal en la garantia jurisdiccional de derechos fundamentales and libertades publicas en Espafta." International Review of Administrative Science, XLVI, No. 1, 1980, 48-60.

Spain s Transition To Democracy

After the death of longtime dictator Generalissimo Franco in 1975, King Juan Carlos acted decisively to institute a dramatic change in Spanish politics. By appointing an unknown Christian democrat, Adolfo Suarez, as prime minister, the king paved the way for the transformation of Spain from an authoritarian regime to a liberal democracy. Central to this singular transition was the formulation of the new Spanish constitution, an unusual process of political give and take. Dr. Bonime-Blanc examines the evolutionary phases of the constitution-making process, describing the conflicts, maneuvers, and compromises of the principal political players involved. Analyzing the negotiations and their constitutional results, she pinpoints the factors that make a successful transition to democracy possible. In her closing chapter, the author illustrates the lessons of the Spanish case and their practical implications for future transitions to democracy.

Foreign Assistance and Related Agencies Appropriations for 1977

I have some justification material already which shows a $ 10 million request for Spain for the transition quarter , in addition to $ 7 million for fiscal year 1977. Is that right ? Compared to a $ 3 million fiscal year 1975 program ...

Foreign Assistance and Related Agencies Appropriations for 1977


Foreign Assistance and Related Agencies Appropriations for 1977

I have some justification material already which shows a $ 10 million request for Spain for the transition quarter , in addition to $ 7 million for fiscal year 1977. Is that right ? Compared to a $ 3 million fiscal year 1975 program ...

Foreign Assistance and Related Agencies Appropriations for 1977


Annual Report of the Executive Directors for the Fiscal Year

Transition to Market : Studies in Fiscal Reform Edited by Vito Tanzi . ... and Financial Surveys World Economic Outlook : A Survey by the Staff of the International Monetary Fund May 1993 ) ( Arabic , English , French , and Spanish ) .

Annual Report of the Executive Directors for the Fiscal Year


Democracy in Modern Spain

Thus , it is conventionally argued that the Spanish transition ended with the ratification of Basque and Catalan autonomy ... Enrique Fuentes Quintana , had been two of the principal authors of the tax - reform proposals of 1973.

Democracy in Modern Spain

Based on more than 500 hours of interviews with key political elites (under both the Franco regime and the current democracy), extensive analyses of public opinion and electoral behavior surveys, and other original research, the book sheds important new light on Spain's democractic regime and its key institutions."--BOOK JACKET.

Trends in Financing Regional Expenditures in Transition Economies

World Bank Discussion Paper No. 378.

Trends in Financing Regional Expenditures in Transition Economies

World Bank Discussion Paper No. 378. Since the collapse of the Soviet Union, real revenues at the local level in Ukraine have fallen to less than half their former level. This report examines key issues faced by regional finance managers confronti

Is the European Union Capable of Integrating Diverse Models of Capitalism

As a result, the magnitude of the Spanish fiscal adjustment (in relation to GDP) surpassed that of Portugal in 2010–13 (Pina ... reflects the prevalence of public norms that emerged from Portugal's revolutionary transition to democracy, ...

Is the European Union Capable of Integrating Diverse Models of Capitalism

The 2009 European sovereign debt crisis and the EU’s policy response to it have prompted scholars to re-think whether diverse national models of capitalism can thrive within the European Union (EU). Are some national economic systems better suited to adapt to European integration than others, and if so, why? Contributions within this volume provide a qualified yes to these questions raised, concluding that the EU favors export-led growth models while it penalizes and discourages domestic consumption-oriented growth paths, particularly those that are financed by debt-accumulation. The book questions whether the EU is capable of integrating these diverse capitalist regimes. This volume adds a comparative capitalism perspective to EU integration scholarship in order to demonstrate that ever-closer union is not capable of accommodating diversity in national economic institutions. Chapters in this volume provide an innovative framework for understanding what factors related to European integration impede the economic and political integration of diverse European market economies. While recent comparative capitalism literature highlights that European monetary integration has favored export-led growth regimes, contributions in this volume outline that the EU’s prioritization of export-led growth over domestic-demand led growth is present in other facets of integration, including EU accession, financial integration, the free movement of people, fiscal governance and the Europe 2020 growth strategy. The chapters in this book were originally published as a special issue of New Political Economy.

Europe and the Financial Crisis

First discussed in 1962, Spanish membership of the EEC had not been a realistic option during the Francoist dictatorship of 1939–75. Afterwards, the transition period had opened up the prospects of joining the EEC.

Europe and the Financial Crisis

The global financial and economic crisis has brought about many effects that are still difficult to interpret univocally. This book studies the consequences of the crisis on Europe by examining the effects on the European institutional setup, governance and architecture and by studying in detail the different member countries.

Three Generations of European Constitutional Courts in Transition to Democracy

One of the main characteristics of the Spanish transition, so successful that it served as a model for a number of countries in ... reducing public spending, restricting credit, increasing fiscal pressure, and introducing a wage freeze.

Three Generations of European Constitutional Courts in Transition to Democracy

A comparative perspective of role played by three generations of European Constitutional Courts in the process of transition to democracy.

Paying for the Liberal State

After unification under Piedmont's guidance and implementation of its fiscal regime to the rest of Italy, one would then expect continued modern economic growth. Growth did continue, but the tax regime failed to continue the transition ...

Paying for the Liberal State

Public finance is a major feature of the development of modern European societies, and it is at the heart of the definition of the nature of political regimes. Public finance is also a most relevant issue in the understanding of the constraints and possibilities of economic development. This book is about the rise and development of taxation systems, expenditure programs, and debt regimes in Europe from the early nineteenth century to the beginning of World War I. Its main purpose is to describe and explain the process by which financial resources were raised and managed. The volume presents studies of nine countries or empires that are considered highly representative of the widest European experience on the matter and discusses whether there are any common patterns in the way the different European states responded to the need for raising additional resources to pay for the new tasks they were performing.

The Spanish Financial System

Another serious rigidity was fiscal. At the end of the dictatorship Spain's tax structure was archaic. The only substantive reform that had been undertaken ... The weak governments of the early stages of the transition did not dare ...

The Spanish Financial System

The book analyses the Spanish financial system from the turn of the last century to the present day and the economic, social and political backdrop to this history. The result is a consummate survey of historical developments leading right up to today's key issues and challenges, and to what the future may hold.