Doctor of Philosophy, The Ohio State University, 2005, Political Science
This dissertation addresses the causes of tax policy changes, its direction and magnitude, in a comparative way by studying three dimensions: centralization, progressivity, and level in Argentina and Brazil during the 1980s and 1990s. The two chosen cases' analytical relevance derives from having experienced tax policy reforms, but different in extent and nature; which is the central explanatory concern. Throughout the literature, explanations of change have had a focus on crisis environments, crisis events, and/or agency. Although all of them present some truth and leverage in order to understand change, some middle-range explanation is lacking. A combination of macro and micro-concerns are crucial for understanding and being able to explain change. This is why institutionally based explanations, containing generalizable qualities without being aloof to contingent and contextual characteristics, are best suited for explaining change. Thus, I present a contingent application of veto players theory in order to explain changes in taxation. It gives importance to strategic actors' interactions and their institutional realities. I put forth the necessity of a reduction of effective veto players in order for change to take place within a realm of multiple veto players. I argue that due to a reduction of veto players during the late 1980s in both cases, change took place in Argentina and Brazil, but to different extent and nature. The reason for their divergences, I argue, is the different nature of the respective veto players' reductions and the prevailing interests after these temporary reductions. The result of the analysis is that Argentina and Brazil decreased the progressive capacity of their taxation, but Argentina decreased it more than Brazil. I close this dissertation with an empirical and theoretical puzzle. Argentina and Brazil do not deviate from the accepted taxation literature of a positive correlation between development level and taxation level, but this (open full item for complete abstract)
Committee: R. Liddle (Advisor)
Subjects: Political Science, General