Melissa Ziegler Rogers

Income taxation and the validity of state capacity indicators

Author(s): Rogers, Melissa Ziegler; Weller, Nicholas | Abstract: AbstractState capacity is a key concept for research in public policy and political science. Despite its importance, there is no broadly accepted measure of state capacity in the existing literature, and frequently used measures of capacity have not been examined for their validity. We begin with an explicit definition of state capacity – the states ability to implement public policy – and connect this definition to a measurable outcome of state capacity – the states taxation of income. We show that this measure, income taxes as a percentage of total tax revenue, is a useful indicator of state capacity and meets higher standards of measurement validity than other tax-based indicators. We also compare our measure to the most common existing indicators of state capacity to show that income taxation is a better theoretical and statistical measure of states’ effectiveness in policy implementation.

What’s Left to Tax? Partisan Reallocation of Trade Taxation in Less Developed Countries

Trade liberalization has reduced trade tax revenue in most less developed countries (LDCs). The options to replace this tax, which has historically been LDCs’ primary source of tax revenue, are limited by competitive pressures in the global economy. Using time-series error correction models, we assess how partisan politics shaped the reallocation of taxes in thirty-eight LDCs from 1975 to 2009. We argue that leftist governments have a vested interest in recovering lost revenue to fund spending that benefits their constituencies but they are highly constrained by the market signaling effects of increasing taxes. We find that leftist governments retained higher levels of falling tax revenue and offset trade tax losses with progressive personal income taxes (PITs). Nonetheless, leftist governments appeared reluctant to increase revenue from corporate income or social security taxes, which impose costs on business. To make up for the trade revenue loss, leftists instead relied more heavily on regressive consumption taxes, which are the most lucrative and market-friendly supplements to preferred PIT. Leftist parties in LDCs demonstrate redistributive concerns, but their tools and the lasting effects of their reforms are limited by strong market constraints.

Ted Galen Carpenter: Review of The Fire Next Door: Mexico’s Drug Violence and the Threat to America

Drug-related violence in Mexico is a profoundly important issue for that country and the entire Western hemisphere. Ted Galen Carpenter’s new book The Fire Next Door: Mexico’s Drug Violence and the Threat to America is a thorough and engaging account of the extent and nature of this problem. The purpose of the book is to provide justification and support for Carpenter’s preferred policy to manage the war on drugs—legalization of illicit substances by the U.S. government. The book is primarily aimed at a U.S. audience to shape U.S. public opinion on the drug war and illustrate the potential threat to U.S. security. Carpenter’s book is very approachable to readers of all backgrounds. He begins the book by introducing the “cast of characters” in Mexico’s drug war (Chapter 1), previous President Felipe Calderón’s aggressive campaign to eliminate the cartels by force (Chapters 2 and 6), and the extent and nature of the recent violence (Chapter 3). Carpenter is very critical of Calderón’s anti-cartel policies and documents the surge in violence during that campaign. The middle section of the book addresses the politics of the conflict and the logic of the drug trade. Chapter 4 presents the plata o plomo (silver or lead) threat facing politicians, security personnel, and judges in Mexico and, perhaps increasingly, officials in the United States. Chapter 5 addresses the frequently expressed concern that Mexico could become a failed state if current violence continues or escalates. The final chapters evaluate the actual and likely effects of drug violence on the United States through corruption of U.S. officials (Chapter 7) andWashington’s role in the fight against the cartels (Chapter 8). The final two chapters detail Carpenter’s justification for legalization as “defunding the cartels” (Chapter 10) and responses to “scapegoats and bogus solutions.” The Fire Next Door’s central focus is to explain recent drug violence and link it to changes in Mexico’s policy under Calderón. The book provides details on high profile killings in recent years, particularly those involving U.S. citizens. Carpenter’s writing keeps the reader interested and is careful to present a reasonable view of nuanced issues Trends Organ Crim (2013) 16:249–250 DOI 10.1007/s12117-013-9192-6