Dynamism and democracy essays on the fiscal social contract in a globalised world

Economic globalisation and tax competition have led to the tailoring of tax policies to suit the interests of internationally mobile taxpayers, often at the expense of immobile taxpayers. This dynamic violates the ‘fiscal social contract’, whereby citizens of nation states consent to tax policies through democratic processes, grounded in the principle of moral equality of persons. This thesis contains four studies that contribute to the multidisciplinary research agenda on the resulting tension between globalisation, national fiscal policymaking and democracy. The first study explores the contemporary nature of the fiscal social contract through the lens of Joseph Schumpeter’s essay The Crisis of the Tax State. Two other studies empirically investigate how globalisation influences national tax systems, respectively examining the determinants of top personal income tax rates and the convergence of tax mixes in OECD countries. The final study offers a philosophical perspective on how countries should address the cross-border impacts of their tax policies, specifically in the context of fair tax base distribution in bilateral tax treaties. A key theme emerging from all four studies is the need for tax policymakers to adapt tax systems to a changing societal context in an increasingly globalised world. In particular, policymakers should explore innovative forms of taxation to complement traditional corporate and personal income taxes.