The Tax Threshold: Policy, Principles, and Poverty

In the absence of an independent poverty standard, postwar Britishgovernments have tended to use current, politically determinedsocial security scales (from Unemployment Assistance in the1930s to Income Support today) as their definition of minimallyadequate income levels, commonly known as an ‘officialpoverty line’. A basic principle of taxation since thedays of Adam Smith, however, has been that incomes below theminimum income required for socially defined necessities shouldbe free of tax. The personal tax allowance which determinesthe income tax-paying threshold thus also provides a practicaldefinition of such an official poverty line. Royal Commissionsand official committees since the nineteenth century have endorsedSmith's principle, but it only acquired major political significanceafter the Second World War when income tax began to affect lowearners, particularly after the 1960s when poverty was ‘rediscovered’in the UK. In spite of this potential coincidence of purpose,a review of evidence and interviews with officials shows thatthere has been no co-ordination of policy between the Treasuryand Inland Revenue responsible for determining the level ofthe tax allowances, and the Social Security ministries responsiblefor the minimum benefit scales. The tax threshold has consequentlycontinued to be determined by considerations of political economyand administration and not by the alleviation of poverty. ^* This paper is part of a larger project on concepts of povertyand need in British income maintenance systems, chiefly the‘Assistance’ schemes which ran from 1934 to 1966.I am grateful to the many people who have helped with the project,regrettably too numerous to name here. I am particularly indebtedto Sir Norman Price and Sir Kenneth Stowe, James Meade, DellaNevitt, and). Leonard Nicholson for information on the tax issues,and want to record my thanks to them and to Fran Bennett, JohnHills, Chris Pond, and Adrian Sinfield, and especially RodneyLowe, as well as participants in seminars at the Universitiesof Edinburgh and Essex, and in Budapest, for their advice onthis paper.     

Re-Thinking Legislative Productivity: Commemorative Legislation and Policy Gridlock

This research charts the levels of commemorative legislation passed in Congress in the postwar era and assesses the conditions generating such legislation. Utilizing a statistical model of stalemate developed by Sarah Binder, it demonstrates that conditions hypothesized to produce gridlock on salient legislation also generate (even more statistically robust) activism on commemoratives. ¹ Our joint appreciation to Paulina Burdge-Small and Michael Williams for their help in collecting the data analyzed in this paper. In addition, Dodd expresses appreciation to the Woodrow Wilson International Center for Scholars for support that aided his contributions to the paper.      

Methodological Foundations for Public Policy Analysis: A Review Essay

Books reviewed in this articles:
Garry D. Brewer and Peter deLeon, The Foundations of Policy Analysis
Stuart S. Nagel, Policy Evaluation: Making Optimum Decisions
David C. Paris and James F. Reynolds, The Logic of Policy Inquiry
William N. Dunn, Public Policy Analysis: An Introduction
Melvin J. Dubnick and Barbara A. Bardes, Thinking About Public Policy: A Problem-Solving Approach     

Political Decoupling: Private Implementation of Public Policy

Where policy goals can be achieved through regulation of private firms, private provision of public services allows governments to separate public policies from their political costs by shifting those costs to the private sector. Over the past three decades, financial decoupling has emerged as a regulatory strategy for promoting conservation, especially in the energy sector. Decoupling refers to the separation of a firm’s revenues from the volume of its product consumed, which allows companies to pursue resource efficiency free from financial risk. Similarly, when private firms provide public services, they separate public policies from their political costs. This political decoupling allows governments to pursue controversial policies while avoiding their attendant political risks. Applied to environmental policy, this theory implies that potentially unpopular conservation policies are more likely to be adopted and succeed when implemented through private firms. As an initial test of the theory, we analyze California water utilities and their responses to that state’s drought from 2015–2017. Analysis shows that, compared with those served by local government utilities, private utilities adopted more aggressive conservation measures, were more likely to meet state conservation standards, and conserved more water.     

Public and Private Policy Change: Pension Reform in Four Countries

This article offers a comparative, qualitative analysis of the changing nature of—and relationship between—public and private old age pensions in the United States, Canada, Britain, and Japan. Stressing the impact of institutional legacies on policy change, the article explains why these countries have taken contrasting paths toward the restructuring of public and private pension policies. The study finds that the four countries fall into two distinct clusters. On the one hand are Canada and the United States, which have essentially witnessed policy drift toward a greater reliance on private savings. On the other hand are Britain and Japan, which have reshaped their pension systems largely through legislative revision. The last section explains the differences between and within these two country clusters. The article concludes that institutional forces explain the distinctive policy patterns between the two country clusters but that it is necessary to bring in other factors (i.e., demographic aging, union density, and the role of ideas) to account for differences within each of these clusters.     

Pivoting toward Asia: Comparing the Canadian and American Policy Shifts

Both Canada and the United States have “pivoted” toward Asia in their foreign policy over the past decade, although emphases in those pivots differed between the two countries. The former focuses on an economic pivot initially, the latter on a security one. What factors explain these shifts? What was the magnitude of policy change by both? Utilizing some important theoretical works by Charles Hermann, we discuss the factors that appear to have brought about this policy change toward Asia, outline the actions and activities that both countries have initiated toward Asia in the past decade to illustrate the type and magnitude of policy change that has occurred, and compare some areas of political, economic, and military similarities between Canada and the United States toward this region. Finally, we assess the likely future of these pivots to Asia in light of the change in political leadership within both nations.     

Laying the Foundations for the Wheat Scandal: UN Sanctions,Private Actors and the Cole Inquiry

Throughout 2006, Commissioner Terence Cole QC conducted an inquiry into the involvement of Australian companies in the United Nations' Oil-for-Food Programme in Iraq. The inquiry generated headlines about sanctions-busting behaviour on the part of AWB Limited and whether or not government ministers knew or should have known what was happening during the life of the Programme from 1996 to 2003. An element of the scandal that has received little attention is whether AWB Limited's behaviour was actually that extraordinary, given its status as a private company whose obligation to its shareholders was to maximise profits and which, had it not complied with the Iraqi government's demands to bypass the sanctions regime, could have cost the company a very important market. Drawing on the sanctions literature, this paper examines an essential problem at the heart of sanctions implementation; namely, that while states sign on to these international obligations, it is private companies and individuals that generally bear their cost. The paper considers legislative changes prompted by Commissioner Cole's Report but emphasises their limitations. A key and persistent difficulty for Australia and other states is that enforcing their international obligations depends on the goodwill and integrity of private actors.     

Resolve and Credibility: U.S. Policy toward Southeast Asia

Books reviewed in this article:
Fredrik Logevall, The Lost Chance for Peace and the Escalation of the War in Vietnam
Robert McMahon, The Limits of Empire: The United States and Southeast Asia since World War II     

Private Conflict and Policy Passage: Interest-Group Conflict and State Medical Malpractice Reform

James Madison argued in Federalist 10 that "rival political factions" work against the public good. In contrast to Madison's pessimistic account, I suggest that factional conflict can lead to more representative public policy, and thus further the will of the people. I theorize that elected officials often seek a safe political position—one that corresponds to the preferences of the public at large—during periods of high conflict. I assess this theory in one, salient policy area, medical malpractice. I measure conflict with contributions for state candidates given by (i) the health and insurance industries, which generally support malpractice laws, and (ii) lawyers, who frequently oppose the laws. I find that group conflict matters to policy outcomes. I also find evidence that, under conditions of elevated conflict, adopted policies are more likely to move toward the general ideological preferences of the public at large. These results suggest that group conflict affects both the quantity and character of policy in the American states.     

Policy Cues and Ideology in Attitudes toward Charter Schools

Charter schools have generated support from politicians in both major American political parties while stimulating intense debate among interest groups. We investigate whether and how public attitudes reflect interest group polarization or politician consensus. Using an original survey, we find that charter school opinions diverge along ideological lines among high‐information respondents. With embedded experiments, we manipulate respondents' information using policy cues tied to opposing sides of the charter debate: We assess whether the role of private companies and nonunion teachers changes support for charter schools. We find that the public responds favorably to some informational cues; conservatives without prior information are especially persuaded by information about nonunion teachers. This explains how polarized opinion can develop even in the absence of strong partisan sorting among top political leaders and clarifies the partisan and ideological context of ongoing education policy debates.     

Private Citizens as Policy Entrepreneurs: Evidence from Autism Mandates and Parental Political Mobilization

Growing bodies of research in the social sciences point to politicians, bureaucratic officials, interest groups, and other actors who serve as policy entrepreneurs. In this paper, we argue that private citizens can also serve a primary role as policy entrepreneurs. To analyze this phenomenon, we investigate the behavior of private citizens and their role in changing state policies surrounding insurance mandates for autism coverage. Using a thematic analysis of focus groups and interviews conducted with individuals active in the push for autism policy change, we demonstrate that private citizens meet all of the requirements identified for policy entrepreneurs in the existing literature. We then investigate when, why, and how these private citizens step forward into the policy process as entrepreneurs. We show that entrepreneurship occurs when private citizens have needed resources, a sense of duty to fix a policy status quo they see as unjust, and a stake in policy change. We conclude by discussing the importance of our findings to the study of public policy and their generalizability beyond autism policy.     

Game Theory and Institutional Entrepreneurship: Transfer Pricing and the Search for Coordination International Tax Policy

Coordination in international tax policy is extremely problematic. Economists and political scientists have explained this lack of coordination by arguing that tax competition triggers a prisoner's dilemma. In this article I argue that not all international tax policy can be reduced to the prisoner's dilemma syndrome. Transfer pricing policy, the object of this study, can be modeled as a coordination game. By drawing upon game theory and new institutional analysis, I argue that institutional entrepreneurs who decide to play their favorite option first can facilitate the emergence of international policy coordination. This idea is examined in the context of the creation of the new Organization for Economic Cooperation and Development rules on transfer pricing. The conclusion is that coordination emerges in transfer pricing policy through a process of conflictual institutionalization.     

反共主义与杜鲁门政府越南政策的演变

虽然二战后期美国即有意"国际托管"印度支那,但由于英法两国的强烈反对,再加上美国远东利益所需,第一次印支战争爆发后美国最终默许法国重返越南,"不插手"印度支那问题;但随着"杜鲁门主义"的出台,反共主义成为美国外交的主要考虑,为了遏制共产主义的扩张,美国开始"积极介入"越南事务;新中国成立和朝鲜战争爆发后,美国更加加紧了在越南的干涉。