LL110: Tax, Justice and the Economy

The course provides an introduction to tax policy and design that links real-world debates about the tax system with approaches from a range of academic disciplines, including economics, politics, and sociology, as well as law.

Tax is a fundamental part of every society and has major impact on the economy. Everyone has views about the taxes they pay. For example: the rich pay too much (or too little) tax; it’s grossly unfair (or absolutely right) to tax inheritances; taxes can discourage work and investment, but they can also correct market failures and help reduce inequality. Why should people pay taxes for services they don’t use, or give away their earnings to people who don’t work? But, what would it be like to live in a society with no taxes? How can we ensure that everyone pays the taxes they owe? And so on.

The course helps to make sense of these competing views about the tax system. The aim is to address real-world debates about tax policy as they appear in the media and in politics, but to do so in an academically rigorous way. The course adopts a multidisciplinary approach that draws on approaches from across the social sciences – including economics, politics, sociology, and law – to address two main questions: what are the problems with the current tax system, and how can these policies be improved? The main examples will be taken from the UK and US contexts, but the insights generated are truly global.

The focus of the course is on acquiring the skills needed to evaluate and design tax policies using a range of disciplinary perspectives, drawing on the latest academic research. You will learn how to engage with empirical studies of the tax system (from economics) as well as normative arguments about taxes and justice (from political theory) and how to develop the institutional knowledge required to design taxes that will work in practice (from law and tax administration). At the end of the course, you will bring these skills together in application to two topical case studies.

Prerequisites: There are no subject-specific prerequisites for this course: no prior study of Law or any other subject is required or assumed. The course is suitable for any student with an interest in tax policy.

No prior knowledge of the UK or US tax systems is required or assumed; students are introduced to both of these systems as part of the course.

Level: 100 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: 1,500 word essay and one written examination

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

The course is suitable for any student with an interest in tax policy. Students are actively encouraged to apply from a wide range of academic backgrounds within the Social Sciences, including Politics, Economics and Sociology as well as Law.

• Engage with real-world debates about tax policy
• Understand the role of the tax system in society and the economy
• Develop tools for explaining and evaluating tax policies
• Apply principles of tax design to topical case studies

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.