Mises Institute Taxes and the Rise of the Modern State
Nov 7, 2025
Explore the fascinating history of taxation and how it shaped modern governance. Ryan McMaken delves into Schumpeter's concept of the tax state, highlighting its defining characteristics like centralization and discretionary spending. Discover the medieval alternatives to taxation and the moral suspicions surrounding it. Learn about the impact of war and debt in regularizing taxes, leading to the rise of absolutist states. This insightful discussion offers a fresh perspective on the state's evolution through the lens of tax history.
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Start Reform By Studying Origins
- To weaken the modern state, study its origins and how taxation centralized authority.
- Historical understanding helps design strategies to deconstruct centralized fiscal power.
The Tax State Defined
- The modern state is best understood as a "tax state" centered on centralized, unilateral revenue collection.
- Taxes fund general spending rather than pay for specific services, distinguishing modern states from earlier polities.
Four Characteristics Of Modern Fiscal Power
- Four key features define the tax state: centralization, unilateral taxing, discretionary spending, and taxes not being fees.
- These features concentrate fiscal power in the central government and sever the link between payers and specific services.
