Towards A Fiscal Sociology: Taxation, Institutions, and Historical Trajectories

Fiscal sociology is a subfield of sociology that examines how taxation and public finance shape and reflect the relationship between citizens and the state. This article provides a theoretical overview of fiscal sociology, tracing its emergence as a distinct field and distinguishing it from economics and legal studies. Classic thinkers like Rudolf Goldscheid, Joseph Schumpeter, and Max Weber laid the groundwork for viewing taxation not merely as an economic tool or legal obligation but as a sociological phenomenon intertwined with trust, power, and social norms. Unlike economics, which often treats tax compliance as a rational cost-benefit decision and legal approaches focused on formal rules, fiscal sociology emphasizes broader social factors such as trust in government, legitimacy of authorities, cultural norms, and historical trajectories of state development. We discuss core concepts in fiscal sociology, including the role of trust and legitimacy in fostering tax compliance, the importance of tax morale and social norms, and the historical and institutional contexts that shape fiscal systems. Drawing on both classic contributions and modern scholarship (e.g., Campbell, Prasad, Torgler, Brautigam, Levi, Steinmo), the article highlights fiscal sociology’s theoretical contributions. These include understanding how tax systems cultivate or undermine social trust, how legitimacy and fairness perceptions influence citizens’ willingness to pay, and how historical and institutional developments create path dependencies in taxation. The conclusion underscores the value of a sociological lens on fiscal issues, noting that a society’s approach to taxation is deeply embedded in its social structure, norms, and institutions, with significant implications for governance and social cohesion.