Research on capital formation has long been a major focus of studies sponsored by the National Bureau of Economic Research because of the crucial role of capital accumulation in the process of economic growth. The papers in this volume examine the influence of taxes on capital formation, with specific focus on the determinants of saving and the process of investment in plant and equipment.

Examining the structure, politics and historic development of taxation in several countries, this book compares three quite different political democracies. It provides an account of the ways these democracies have financed their welfare programs despite w