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An Alert from the Left: The Endangered Connection Between Taxes and Solidarity at the Local and Global Levels

  • Francisco Saffie G.
Chapter
Part of the Beiträge zum ausländischen öffentlichen Recht und Völkerrecht book series (BEITRÄGE, volume 273)

Abstract

Neoliberal tax policies at the local and the global levels risk democracy consolidating economic inequality by allowing and fostering capital accumulation. As a consequence capital owners have increased their political power to influence and decide on local and global tax policies for their own benefit. The Chilean income tax system and the international tax law system (including tax competition among states and tax havens) are analyzed as examples of neoliberal tax policies at the local and the global level, respectively. At the same time, neoliberalism as a normative order of reason has replaced the political aspect of taxation with economic concepts that tend to dissolve the connection between taxes and solidarity. In this scenario, taxes make no economic or political sense as they are not understood as duties of citizenship. In this chapter recent alternatives proposed to diminish global no taxation and inequality, as the OECD BEPS project and Thomas Piketty’s proposal for a global tax on capital are analyzed and criticized.

Notes

Acknowledgements

I thank all those who took part in the workshop Democracy and Financial Order: Legal Perspectives at Goethe University Frankfurt on 2–3 September 2015, where I presented an early draft of this chapter, for their questions and comments, and to Fernando Atria for reading and commenting on a version of this chapter. I would like to give special thanks to Silvia Steininger and Matthias Goldmann, not only for organizing and inviting me to the workshop, but also for their very detailed comments and suggestions that helped me improve and clarify the argument.

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Copyright information

© Max-Planck-Gesellschaft zur Förderung der Wissenschaften e.V., to be exercised by Max-Planck-Institut für ausländisches öffentliches Recht und Völkerrecht, Heidelberg 2018

Authors and Affiliations

  1. 1.Universidad Adolfo IbáñezSantiagoChile

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