Democracy and the Legitimization to Tax

The central theme of the book is to explore the traditional linkage between democratic participation and the levying of taxes in the context of today’s increasingly globalized and digitalized world.

Why This Book?

The overall theme of the book is the evolving relationship between democracy and the legitimacy of taxation in an increasingly interconnected world. As individuals live, work, and participate across multiple jurisdictions, the traditional link between residence, citizenship and tax obligations becomes less straightforward. Similar dynamics affect the corporate sphere, where multinational enterprises distribute their activities globally and benefit from differing tax regimes, prompting renewed questions about where taxation should properly take place.

The first part of the volume examines the ties between democratic representation and the legality of taxation. The contributions highlight how modern democratic systems rely on political accountability, how international organizations shape domestic perceptions of democratic standards, and how national parliaments continue to serve as important guardians of legitimacy — even as their influence faces growing constraints. This section also considers the European context, analysing how international tax initiatives increasingly shape the development of European legislation.

The second part addresses whether current rules for allocating taxing rights remain adequate. The authors investigate contrasting approaches to taxing mobile individuals, propose grounding taxing rights in concepts of societal membership and solidarity, and evaluate the continued relevance of frameworks created under economic and technological conditions that differed significantly from those of today.

The third part returns to the European level, questioning the alignment between current financing mechanisms and broader policy objectives. It explores whether earmarking could improve public acceptance of taxation, outlines fund-based approaches for supporting large cross-border projects, and concludes by reflecting on whether the complexities of the modern global economy may ultimately require the creation of a more comprehensive worldwide fiscal framework.