How Global Corporate Tax Avoidance Fuels the Wealth Inequalities that Undermine Democracy.

This project aims to develop a theoretical framework to explain how corporate tax avoidance exacerbates wealth inequality and undermines democracy through innovative methodologies and empirical analysis.

Subsidie
€ 2.000.000
2024

Projectdetails

Introduction

This project develops a new theoretical framework and causal mechanism to explain how corporate tax avoidance fuels the wealth inequalities that undermine democracy. It implements new methodological innovations that explain how global capital evades the fiscal constraints of democracy, using a combination of forensic accounting, in-person interviews, computational text analysis, and original survey experiments.

Research Objectives

The objectives of the project are guided by two overarching research questions:

  1. Why is concentrated capital and wealth inequality a problem for democracy?
  2. What is the role of corporate tax avoidance and law in enabling this process?

The empirical and comparative case study analysis are designed to answer these questions.

Analysis Framework

First, we explain the global wealth chains and tax avoidance structures of big tech and big pharma multinational groups.

Second, we explain how legal-technical actors create these structures and strategies.

Third, we explain how their wealth protection strategies destabilize the functioning of democracy.

Fourth, we explain the role of the media in politicizing corporate tax avoidance as a problem for democracy.

Work Packages

The project has four work packages:

  1. Theoretical Framework: We construct a new theoretical framework, typology, and causal mechanism to explain how corporate tax avoidance leads to the wealth inequalities that undermine democracy.

  2. Tax Avoidance Structures: We explain the tax-avoiding wealth chains of big tech and big pharma using a combination of forensic accounting and statistical mapping techniques.

  3. Legal-Technical Actors: We explain how legal-technical actors create these structures using a combination of in-person interviews, list survey experiments, and computational text analysis.

  4. Media's Role: We implement a cross-national survey experiment to explain the role of the media in disrupting the political consensus of legal-technical experts.

Normative Principles

Finally, we develop a set of new normative principles to guide how governments can respond in a democracy-enhancing way.

Financiële details & Tijdlijn

Financiële details

Subsidiebedrag€ 2.000.000
Totale projectbegroting€ 2.000.000

Tijdlijn

Startdatum1-9-2024
Einddatum31-8-2029
Subsidiejaar2024

Partners & Locaties

Projectpartners

  • UNIVERSITY COLLEGE DUBLIN, NATIONAL UNIVERSITY OF IRELAND, DUBLINpenvoerder

Land(en)

Ireland

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