Public Reactions to the Growth of Taxation and Government Expenditure
Opinion poll and behavioral evidence indicates that public resistance to the growth of taxation and state expenditure has increased significantly during the last decade in many advanced industrial democracies. This paper examines trends in the magnitude, composition, and consequences of taxation and government spending in relation to cross-national patterns of popular opposition to the expansion of the welfare state in five European industrial societies. The evidence suggests that the politically optimal system of taxation and expenditure relies heavily on indirect and programmatic taxes rather than on direct, general-revenue levies, and channels state resources toward cash transfers to households rather than into labor-intensive public consumption.