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Global income inequalities are met with increasing calls for direct supranational redistribution. This article argues that from the perspective of political feasibility, this approach should not be prioritised. We use the example of tax competition to show that supranational regulation that stops short of direct redistribution has better chances of being implemented. Moreover, as the case of tax competition illustrates, such regulation can help to shore up the capacity of nation states to redistribute internally, which indirectly tends to reduce global (...) inequalities, too. Against this background, we formulate the conditional subsidiarity principle of redistribution. It states that when the case for direct supranational redistribution is built on the alleged incapacity of the state to redistribute due to the pressures of globalisation, our first instinct should be regulatory reform in order to restore this capacity. Finally, the article asks whether two prominent proposals for global taxation – the global resource dividend and the financial transaction tax – pass the test of the conditional subsidiarity principle. (shrink)

What kind of political systems should there be? In this paper I examine two competing principles of institutional design — an instrumental view, which maintains that one should design institutions so as to realize the most plausible conception of justice, and a democratic view, which maintains that one should design institutions so as to enable persons to participate in the decisions that impact their lives. I argue for a mixed view that combines these two principles. In the second stage of (...) the argument, I draw on this principle of institutional design to argue for the need for suprastate institutions. These are required to protect persons’ core basic rights and, over and above that, they are needed to provide fair and legitimate procedures for choosing which rules should govern the global economy and environment. The third stage of the argument develops this account by elaborating on what features global institutions must possess for them to perform these two distinct kinds of roles. (shrink)

The consequences of taxation matter for the optimal design of the tax system. Those consequences depend on behavioral responses to taxation, as summarized by the elasticity of taxable income. Although this elasticity depends on characteristics of preferences, such as the elasticity of substitution between goods and leisure, it also depends on the avoidance technology, and on the response of government to avoidance behavior. It depends on the size of states, and the amount of tax coordination and harmonization. To some degree (...) the elasticity of response can be affected by government policies, and the government need not accept it passively, but rather should put in place policies that optimally determine it. (shrink)