ABSTRACT
For Joseph Schumpeter, taxes were the defining characteristic of the modern state: without the need for funds, there would have been no immediate reason to create it. By collecting taxes, the state has gained the ability to produce socially desirable public goods not provided – or not to a sufficient extent – by the market. The tax system has been endowed with the task not only of securing revenue, but also of correcting the way the market allocates resources. As such, it has been assigned the function of implementing socio-political ideas of a just, or more just, distribution of resources. Together, these purposes legitimize state intervention in the market distribution of resources. However, this does not clarify who should be taxed, to what extent, and in what form. In this sense, public discussion about just tax policy can be seen as a conflict regarding the fair distribution of resources and burdens. Only if the tax system is perceived as just can it claim social validity as well as political approval for its redistributive effects.
