Market distribution, fiscal distribution and inequality: a case study of Britain
2014-08-08T08:44:41Z (GMT) by
Widening social disparities represent a fundamental danger to the viability of civilized societies. They are corrosive of social solidarity and economically dysfunctional. Combatting such disparities should be a primary function of modern democratic states. The task is multi-faceted, however, and not simply confined to the optimal use of state transfers to increase the household income of the poorest sections of society. This chapter focuses, in particular, on the need to reverse the widening of market income disparities typical of the neoliberal era, as well as the priority of guaranteeing sufficient tax revenues for states to eradicate the evils of poverty and social deprivation. This would require an end to tax competition between European and other states, the elimination of tax and regulatory arbitrage by transnational corporations and the restoration of viable systems of progressive income tax in all European countries.