ABSTRACT

State revenue bases have often been cited as the critical linkage between the state and the economy (Tilly 1985, 1992; Karl 1997). The fewer rentier bases state incumbents possess in order to meet distributional pressures, the more they are motivated to create productive bases through real economic growth. Productive revenue bases refer to the state's dependence on taxing the economy as its prime source of income. In this context, state income becomes tightly related to generating economic growth and broadening the tax bases through increasing national income.