The Political Economy of Taxation and Tax Reforms in New EU Members

This study analyzes the political economy determinants of several issues in taxation and tax reforms in new UE Members countries. The definition of the role of government and the relations among different levels of government, as well as the definition of a new fiscal institution, including tax administration, depend on the political process and on the political will of policymakers, which in turn is based on the political support they can enjoy. In transition countries, this support is often based on interest groups, rent seeking, economically and politically powerful, rather than on the majority of voters. These interest groups, together with other political constraints faced by policymakers, have a strong impact on tax reforms in new EU Members countries