Schumpeter's crisis of the tax state: An essay in fiscal sociology

Schumpeter'sCrisis of the Tax State and other fiscal writings are summarized. His crisis theory and its relation to his prognosis of capitalist decline is explored, along with Goldscheid's earlier model. Both are found to have underestimated the resilience of the tax state and its ability to sustain expanding budgets. Schumpeter's view of the income tax as appropriate for a minimal state is assessed along with subsequent tax development. His fiscal model is placed in the context of his understanding of sociology as a social science. Some conjectures on his response to the subsequent course of fiscal sociology are added.The Editors invitation to revisit the Crisis of the Tax State coincided with my intent to review Schumpeter's recently publishedEssays in Economic Policy, 1991, C. Seidl and W. Stolper, eds., Princeton University Press. Spanning Schumpeter's economic and fiscal writings for three decades, this volume provides a rich addition to his initial vision, so that these pages may serve both tasks.