Re-Imagining Tax Justice in a Globalized World

15 Pages Posted: 11 Jun 2020

See all articles by Tsilly Dagan

Tsilly Dagan

University of Oxford, Faculty of Law; Bar Ilan University

Date Written: January 31, 2020

Abstract

In this paper I explain why designing a country’s tax policy with the elasticity of taxpayers’ choices of residency in mind, although a rational welfare-maximizing move by the state as a whole, and possibly even for its immobile as well as mobile constituents, is a policy that may not be justified under a liberal-egalitarian social contract.

I discuss two polar views of the social contract: one endorsing the state with the coercive power to promote the joint interests of its constituents. The other, views the coercive power of the state as a way to fulfil the collective will of its constituents as a society of equals in order to promote who they are as people. If states’ coercive power is based on equal respect and concern, a policy that undercuts such equality might not be justified. The state thus faces a dilemma: taking into account the increased electivity of taxation (by some) could undermine the normative foundations of the power of the state to tax. Ignoring such increased electivity, on the other hand, may limit the potential of some individuals and the state as a whole to flourish.

Keywords: International taxation, Resident mobility, Justice

Suggested Citation

Dagan, Tsilly, Re-Imagining Tax Justice in a Globalized World (January 31, 2020). Available at SSRN: https://ssrn.com/abstract=3602678 or http://dx.doi.org/10.2139/ssrn.3602678

Tsilly Dagan (Contact Author)

University of Oxford, Faculty of Law ( email )

St Cross Building
St Cross Rd
Oxford, OX1 3UL
United Kingdom

Bar Ilan University ( email )

Ramat Gan
Ramat Gan, 52900
Israel

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