Friday, October 25, 2013

Mehrotra's "Making the Modern American Fiscal State"

I’m very happy to note the publication of Making the Modern American Fiscal State: Law, Politics, and the Rise of Progressive Taxation, 1877–1929, by Ajay K. Mehrotra, a professor of law and associate dean for research at the Maurer School of Law at Indiana University, Bloomington.  The book appears in the series Cambridge Historical Studies in American Law and Society, which is edited by Christopher Tomlins. 

Saith the press:
At the turn of the twentieth century, the US system of public finance underwent a dramatic transformation. The late nineteenth-century regime of indirect, hidden, partisan, and regressive taxes was eclipsed in the early twentieth century by a direct, transparent, professionally administered, and progressive tax system. In Making the American Fiscal State, Ajay K. Mehrotra uncovers the contested roots and paradoxical consequences of this fundamental shift in American tax law and policy. He argues that the move toward a regime of direct and graduated taxation marked the emergence of a new fiscal polity - a new form of statecraft that was guided not simply by the functional need for greater revenue but by broader social concerns about economic justice, civic identity, bureaucratic capacity, and public power. Between the end of Reconstruction and the onset of the Great Depression, the intellectual, legal, and administrative foundations of the modern fiscal state first took shape. This book explains how and why this new fiscal polity came to be.
Here’s the TOC:


Part I. The Old Fiscal Order:
1. The growing social antagonism: partisan taxation and the early resistance to fiscal reform
2. The gradual demise: modern forces, new concepts, and economic crisis

Part II. The Rise of the Modern Fiscal State:
3. The response to Pollock: navigating an intellectual middle ground
4. The factories of fiscal innovation: institutional reform at the state and local level
5. Corporate capitalism and constitutional change: the legal foundations of the modern fiscal state

Part III. Consolidating the New Fiscal Order:
6. Lawyers, guns, and public monies: the US treasury, World War I, and the administration of the modern fiscal state
7. The paradox of retrenchment: postwar Republican ascendancy and the resiliency of the modern fiscal state


Reviews by Brian Balogh, Lawrence M. Friedman, Louise Campbell, Richard Bensel, and Michael Bernstein after the jump.
“Mehrotra has crafted a narrative that is fundamental to understanding the modern American state. By unearthing the intellectual, economic, political, and emotional spade work required to lay the groundwork for a major conceptual change in public policy, he shows how a highly decentralized, politicized, and indirect method of taxation was transformed into a centralized, neutrally administered, direct method of taxation with great potential to achieve redistributive ends.” --Brian Balogh, University of Virginia

“An important contribution to the intellectual, economic, legal, and political history of the American system of taxation; a much needed exploration of the way in which the progressive income tax replaced an earlier system of tariffs and miscellaneous imposts. Because taxes are the fuel that keeps the machinery of government going and that, in large measure, determine how much government can actually do, a rigorous and comprehensive exploration of how the system developed helps us understand our present situation and where, perhaps, we might be heading.” --Lawrence M. Friedman, Stanford Law School

“A fascinating, nuanced account of the intellectual and legal roots of modern progressive taxation in the United States, which established a new form of fiscal citizenship, a newly muscular administrative apparatus, and a new set of revenues that would fuel the American century, but also foreclosed other options. A must-read for those interested in the formation of the American state and the origins of contemporary tax politics.” --Andrea Louise Campbell, MIT

“In this panoramic interpretation of taxation, Mehrotra convincingly demonstrates that the modern state owes its very existence to a reconceptualization of communal responsibility in which the ‘ability to pay’ became a moral obligation and, thus, a policy principle.” --Richard Bensel, Cornell University

“Mehrotra’s book refines and extends the historical narrative on the rise of modern American statecraft. The development of the new tax systems this book cogently documents not only allowed a relatively young and newly emergent nation to participate meaningfully in world affairs, but also firmly established modes of governance that would ultimately define the reformist political economy of the mid-twentieth-century United States.” --Michael A. Bernstein, Tulane University