COVID-19 temporarily re-made fiscal politics. States responded to the health threat by enacting a sudden and far-reaching contraction of the private sector, partly compensated by an unprecedented expansion of the public sector. The moves proved temporary, with a swift return to fiscal and monetary constraint. However, the COVID response potentially provides lessons for understanding broader changes in capitalism.
In part I of our post, we used Schumpeter’s theory of the tax state to trace how changes in the organisation of capitalism had their ‘fiscal reflection’ in changing fiscal accounting practices. In this part II of our discussion of the tax state, based on a journal article recently published in Critical Perspectives on Accounting, we identify a new set of ‘hybrid’ fiscal tools, built prior to, but used during COVID, that could point to a more enduring shift in fiscal politics beyond neoliberalism [...]
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