Income tax was not the result of democratisation, and governments should take note

Most democratic nations use income tax. Yet the reasons the measure was adopted were far from democratic, explain Isabela Mares and Didac Queralt. The measure was originally used to consolidate the power of the elites by imposing a heavier burden on industrialists, while the value of one’s vote would even be weighted by the amount of tax one would pay, making income tax responsible for various types of inequality. This history should be considered when drawing fiscal policy today, the authors argue. Although governments should strive to have the wealthy on board, they should not favour them at the expense of everyone else.