Taxes: Price of Civilization or Tribute to Leviathan?

Author
Lant Pritchett, Yamini Aiyar
Content Type
Working Paper
Institution
Center for Global Development
Abstract
There are two dominant narratives about taxation. In one, taxes are the “price we pay for a civilized society” (Oliver Wendell Holmes Jr.). In this view taxes are not a necessary evil (as in the pairing of “death and taxes” as inevitable) but a positive good: more taxes buy more “civilization.” The other view is that taxes are “tribute to Leviathan”—a pure involuntary extraction from those engaged in economic production to those who control coercive power producing no reciprocal benefit. In this view taxes are a bane of the civilized. We consider the question of taxes as price versus tribute for contemporary India.
Topic
Civil Society, Economics, Governance, Budget
Political Geography
India