Tax and Globalisation: Toward a New Social Contract

Area of Science:

• Political Science
• Public Finance
• International Relations

Background:

• The traditional social contract links taxation and representation within state borders.
• Globalization allows individuals to operate beyond state borders, impacting tax collection.
• This shift jeopardizes states' ability to provide public goods and ensure equal membership.

Purpose of the Study:

• To analyze the impact of globalization on the state's ability to tax.
• To explore how to reform the social contract in the context of globalization.
• To balance individual liberty and opportunities with the needs of public goods and justice.

Main Methods:

• Conceptual analysis of social contract theory.
• Examination of globalization's effects on state fiscal capacity.
• Exploration of policy implications for taxation and governance.

Main Results:

• Globalization erodes the traditional basis of state taxation and representation.
• Increased individual mobility limits states' fiscal autonomy and capacity.
• A new social contract is needed to reconcile global opportunities with state functions.

Conclusions:

• Revitalizing the social contract is crucial for maintaining just institutions.
• Taxation under globalization requires innovative approaches to fund public goods.
• The new social contract must support collective self-determination and individual liberty.