It is widely acknowledged that a fair tax system is one of the most crucial foundations for any country to pursue stable development and human values. So how does a country accomplish tax fairness? This article argues that war finance and domestic economic inequality are two critical conditions. Historically, wars usually create opportunities for countries to enact progressive tax reforms. However, countries’ war finance choices are conditioned by domestic economic inequality. When inequality is low, the political leadership is more likely to secure a consensus of ‘equality of fiscal sacrifice’ between domestic wealthy elites and ordinary citizens. As a result, the leadership can more successfully enact progressive taxation, money creation and non-military spending cuts to pay for the war. Conversely, when inequality is high, the societal redistributive conflict could be more serious. Unable to strike a bargain of fiscal sacrifices without severe social instability, the leadership is expected to resort to a debt-financing strategy, which stifles tax progressivity and fairness. This article compares the United States’ war finance in the Korean and Vietnam Wars and finds supportive evidence. This article has important implications for the pursuits of tax fairness, democratic accountability, and the prospect for peace.

中文翻译：

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经济不平等，战争财政和对税收公平的追求

众所周知，公平的税收制度是任何国家追求稳定发展和人类价值观的最关键基础之一。那么一个国家如何实现税收公平呢？本文认为，战争融资和国内经济不平等是两个关键条件。从历史上看，战争通常为各国实施渐进的税制改革创造机会。但是，各国的战争经费选择取决于国内经济不平等。当不平等程度很低时，政治领导者更有可能在国内富裕的精英阶层与普通公民之间达成“财政牺牲平等”的共识。结果，领导层可以更成功地制定累进税制，创造货币和削减非军事开支以支付战争费用。相反，当不平等程度很高时，社会再分配冲突可能会更加严重。在没有严重的社会不稳定的情况下，无法达成财政牺牲的讨价还价，预计领导人将诉诸债务筹资战略，这扼杀了税收的累进性和公平性。本文比较了朝鲜战争和越南战争中美国的战争财政状况，并找到了支持性证据。本文对追求税收公平，民主问责制和和平前景具有重要意义。