Modernization of the Fiscal System: Some Remarks on the Introduction of Capital and War Wealth Levies in Selected Countries From Western and Central Europe

Abstract

This article aims to show that extraordinary taxes, introduced after WWI, performed better in Central and Eastern European (CEE) countries than in Western countries, even though they were originally a Western idea. The research reveals that these taxes generated some revenue, but their main function was to show that governments were trying to tackle the unfairness that had resulted from years of running a war economy. It is doubtful that these taxes are useful components of fiscal systems, as they are something of a paradox. They create more injustice (Adam Smith’s principles of taxation were partially broken when these taxes were applied), although they should theoretically reduce the inequalities caused by war.