Document Type

Working Paper

Publication Date

3-21-2015

SSRN Discipline

PSN Subject Matter eJournals; ARN Subject Matter eJournals; Political Economy - Comparative eJournals; LSN Subject Matter eJournals; Tax Law & Policy eJournals; Public Economics eJournals; ERN Subject Matter eJournals; Financial Economics Network; MRN Business School Research Papers; Management Research Network; Economics Research Network; Legal Scholarship Network; Public Choice & Political Economy eJournals; European Economics eJournals; Law School Research Papers - Legal Studies; Law & Society eJournals; Law & Society: Public Law eJournals; Auditing, Litigation & Tax eJournals; BHNP Subject Matter eJournals; Accounting Research Network; MRN Business History & Nonprofit Organizations Research Network; Political Science Network

Abstract

This Article highlights an anomaly It tells a story of two tax rules that were introduced at the same time to achieve a similar goal Both were meant to be temporary and stimulate economic growth but received dramatically different outcomes The Article reviews the reasons for this paradox It demonstrates that the causes are structural ideological and political It argues that the historical support the two mechanisms received diverged in accordance with their complexity the perceptions they epitomized and their instrumental role in society The Article not only enriches an important and ongoing debate on the role of the tax system in our society that has received much attention in recent years but also provides important historical insights to policymakers

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