Direct Taxes Research Articles

Quality Assurance and the Contributions of Indirect Tax Revenues in Ghana: Tax Management Maturity Model as a Referent Approach

Tax Revenue is the most vital source of revenue for governments. Indirect taxation offers much more revenue than direct taxation in most economies in the West African Sub-region since approximately 75% of government revenue is provided from indirect taxes, and only just 25% is derived from other non-taxes and direct tax sources. The study, therefore, assessed the contributions of indirect taxes to total tax revenues in Ghana using the tax management maturity model as a referent approach. The study adopted the ex-post facto research design, which is considered quasi-experimental. This study further made use of both primary and secondary data. The primary data was gathered through questionnaires. The study sample comprised business taxpayers in Ghana. A total of 165 businesses were conveniently sampled to participate in the study. The study covered the fiscal periods from 2010 to 2020. The study discovered that indirect taxes have a significant positive impact on the total tax revenue of Ghana. Concerning tax operations, the study discovered that filing and submission, payment of tax liability, and tax recordkeeping all have a role in driving tax assurance. It was also established that the task risk management issue included detecting and mitigating business and operational risks, with such risks and their mitigating procedures reported to interested parties. Monitoring and testing quality entail discovering and communicating control shortcomings, developing follow-up procedures, and monitoring methods and policies. It was recommended that tax accountants and directors of businesses and institutions assigned to accounting or tax records be regularly trained by their management to ensure quality assurance on the tax obligations of the firms involved. Keywords: Quality Assurance, Tax, Management, Maturity, DOI: 10.7176/EJBM/14-11-05 Publication date: June 30 th 2022

To Comply or Evade? Direct Taxes, Private Entrepreneurship and the Institutionalisation of Informal Practices in Hungary, 1945–1956

Direct taxes are often considered to have had a lesser role in the economic development of communist countries when compared to their equivalents in market economies. This article challenges this view by arguing that direct taxes were critical in influencing the socio-economic transformation of Hungary between the end of World War II and the installation of the pro-Moscow regime of János Kádár after the failed 1956 revolution. Taxes levied on private businesses conditioned individuals’ economic prospects and simultaneously gave rise to various creative practices in economic self-management. Taxation under socialism not only shaped the lives of self-employed people but also had a lasting impact on society more broadly and the communist state itself.

Tax structure and corporate tax compliance: evidence from China

This article empirically examines the impact of tax structure on corporate tax compliance using Chinese industrial enterprise database and prefectural data. The results show that relying more on indirect taxes tends to decrease corporate tax compliance, while increasing the ratio of direct taxes of total tax revenues significantly enhances corporate tax compliance. To overcome endogeneity, the robustness is tested using instrumental variables and other robustness checks, such as changing variables and changing time windows. Mechanism analysis shows that it is conducive to reducing the complexity of the tax system, improving the quality of governance, and enhancing taxation efforts. This article examines the impact of tax system on corporate taxation behaviour from the perspective of the tax structure, which also provides microscopic empirical evidence for tax reform in China.

A Comparative Analysis of the Effect of Direct and Indirect Tax on Nigeria's Economy

A Comparative Analysis of the Effect of Direct and Indirect Tax on Nigeria's Economy

Is Bitcoin's Carbon Footprint Persistent? Multifractal Evidence and Policy Implications.

The Bitcoin mining process is energy intensive, which can hamper the much-desired ecological balance. Given that the persistence of high levels of energy consumption of Bitcoin could have permanent policy implications, we examine the presence of long memory in the daily data of the Bitcoin Energy Consumption Index (BECI) (BECI upper bound, BECI lower bound, and BECI average) covering the period 25 February 2017 to 25 January 2022. Employing fractionally integrated GARCH (FIGARCH) and multifractal detrended fluctuation analysis (MFDFA) models to estimate the order of fractional integrating parameter and compute the Hurst exponent, which measures long memory, this study shows that distant series observations are strongly autocorrelated and long memory exists in most cases, although mean-reversion is observed at the first difference of the data series. Such evidence for the profound presence of long memory suggests the suitability of applying permanent policies regarding the use of alternate energy for mining; otherwise, transitory policy would quickly become obsolete. We also suggest the replacement of ‘proof-of-work’ with ‘proof-of-space’ or ‘proof-of-stake’, although with a trade-off (possible security breach) to reduce the carbon footprint, the implementation of direct tax on mining volume, or the mandatory use of carbon credits to restrict the environmental damage.

Does Laffer Curve Exist in Tax Structure of Pakistan? A Threshold Regression Analysis

Laffer curve is a trade-off between tax cuts and tax revenues. The study implies threshold regression to test the existence of the Laffer curve in Pakistan’s economy using time series data for a period of thirty years (1991-2020). The linear association between tax cuts and tax revenues was assessed using simple ordinary least squares technique. The tax structure of Pakistan mainly constitutes two components, direct and indirect taxes. This study examined nature of the Laffer curve using data on direct tax revenue and corporate tax rate. The study supported the evidence of the Laffer curve with a threshold tax rate of 26%. The existing corporate income tax rate in Pakistan is 29% which lies in prohibitive range of the Laffer curve. As a policy measure, the corporate tax rate is recommended to be reduced at least up to the threshold level in order to bring the maximum number of tax evaders and elites under the tax net to enhance the tax revenues of Pakistan.

Strategies to Deregulate the Downstream Petroleum Sector of Pakistan

Oil products play a dynamic role in the overall energy domain because it supports country-wide transport, industries, and households. The oil market in most countries is deregulated and provides free access to every organization or independent player. Some of them have followed this policy from the very beginning, while others have followed the strategy regarding deregulation at a later stage. In Pakistan, there is a usual tug of war between Government authorities and Oil Marketing Companies (OMCs) concerning the decision of setting oil prices. This exploratory study aims to assess the prospects of deregulation of oil prices from the point of view of stockholders from the Oil Marketing Companies (OMCs). Data is gathered through interviews from the professional stakeholders who are working in the supply chain department in the downstream petroleum sector of Pakistan, and a thematic analysis method was used to analyze the data. As per the data obtained from the interviewees, there are both advantages and disadvantages of deregulation of petroleum. Advantages are like low prices of petroleum products, positive impact on the economy, opportunities for new entrants, and creation of new jobs. While the disadvantages are oligopoly created by the mafias, failure of the system, dumping of fuel, and increase in cross border smuggling. While the major barriers to deregulation are the Oil and Gas Regulatory Authority (OGRA) and political forces, and the facilitators for the deregulation are foreign direct investment and high tax collection of the Government. The deregulation must be done immediately to pass on the benefits of reduced and appropriate prices of petroleum products besides their availability in every city of the country. Government should also promote bulk import and storage of petroleum products so that the companies get possible economic ordering benefits of low prices.

Clientelism and fiscal redistribution: Evidence across countries

This article marshals empirical evidence from a cross-section of up to 87 countries to consider the impact of clientelism on fiscal redistribution in the form of direct taxes and public transfers. Clientelism may directly undermine fiscal redistribution towards poorer individuals because their political support is cheaper to buy, political patrons will limit redistribution to keep clients dependent and, moreover, will eschew fiscal policies that target broad categories of citizens based on explicit criteria, and favor instead private benefits that they can disburse to individual clients with a relatively high degree of discretion. The empirical analysis controls for a range of potentially confounding covariates, explores various transmission channels and accounts for the real possibility that more extensive redistributive programs may undermine the strength of clientelism. The results strongly suggest that clientelism is inimical to income redistribution towards the poor through taxes and transfers and, moreover, identify reduced public good provision as one indirect channel through which clientelism may undermine fiscal redistribution.

Case Law Trends: E, Veronsaajien Oikeudenvalvontayksikkö C-480/19: A Remarkable Case

Veronsaajien oikeudenvalvontayksikkö C-480/19 (hereafter the E case) is the first case dealing with the taxation of income received by a shareholder in an investment fund in her residence state. While the ultimately decisive element for the court to strike down the Finnish rule at stake seems to have been an inconsistency in Finnish law, the case includes various nuances that are of broader relevance. Foremost, this concerns the rather particular perspective taken in by the court in the comparability analysis that appears to include elements of an equivalence test used in the mutual recognition doctrine – an area that is rarely relevant in direct taxation matters. EU tax law, fund, ECJ case law, CIV, comparability, E case, Finland, SICAV, mutual recognition, EU

An analysis of the impact of direct taxes on the economic growth of Nigeria (1970-2020)

This study examined the impact of direct tax on the economic growth of Nigeria for the period of 1970-2020. The objectives that guided this study include: to establish the impact of companies’ income tax (CIT) on economic growth of Nigeria from 1970-2020; and to investigate the impact of petroleum profit tax (PPT) revenue on economic growth of Nigeria from 1970-2020. The study used data from Federal Inland Revenue Services, Central Bank of Nigeria (CBN), and the National Bureau of Statistics (NBS). The used Ordinary Least Square (OLS) Model, Augmented Dickey-Fuller (ADF), linear and multiple regression as data analysis tools. The finding of the study indicated a positive impact of companies’ income tax on the economic growth of Nigeria (R-Square = 0.0562, Prob > F = 0.0940). Furthermore, there was a positive impact of petroleum profit tax on the economic growth of Nigeria (R-squared = 0.1013, Prob > F = 0.0229). The study concluded that both CIT and PPT have a positive impact on the economic growth of Nigeria. The study recommended that the federal government of Nigeria should come up with diversification mechanisms that will avert over-dependence on oil revenue (petroleum profit tax) since when oil prices fluctuate, it can have detrimental effects on the economic growth of the country. The study further recommended that government should begin to emphasize tourism, agriculture, and telecommunications to expand its tax base.

ISSUES IN PAKISTAN’S DIRECT TAXES: AN EXAMINATION OF THE RECENT PROBLEMS IN THE INCOME TAX ORDINANCE, 2001

Pakistan is amongst the countries with reliance on indirect taxes more than the direct taxes, as far as the revenue collection from tax is concerned. Being a law dynamic in nature, income tax law in Pakistan undergoes several changes in a tax year; some proving to be useful while others problematic. In either case, there are some flaws exposed due to reliance of each statutory provision over the others. As of the tax year 2022, there are several problems including tax on deemed income, super tax, active taxpayers list, recharacterization of income, withholding taxes, presumptive taxation and some procedural aspects. This paper tends to examine the legal aspects all of these problems with reference to their relevant provisions of law and also aims at providing pragmatic solutions and recommendations that may be adopted for a better system of direct taxes in Pakistan. Keywords: direct taxes, deemed income, active taxpayer, MTR, PTR, audit, amendment of assessments, unexplained income or assets, intra-vires doctrine, tax reforms.

The Influence of Fiscal and Monetary Policy on Indonesia's Economic Growth

The government has two policies in promoting economic growth, namely monetary policy, and fiscal policy. The purpose of this research is to see the extent to which the effectiveness of fiscal and monetary policies in influencing economic growth in Indonesia, as well as to see the effect of unemployment and investment in mediating the relationship between the dependent variables (taxes, government spending, credit interest rates, and the money supply) on economic growth. in Indonesia for the period 2000-2019. The research approach uses a quantitative approach which is carried out in the form of path analysis with time-series data in the annual period, namely from 2000 to 2019. The data used is secondary data obtained from various sites of the Indonesian Central Statistics Agency, Bank Indonesia, World Bank, etc. The results of this study are direct taxes and government spending have a positive effect on economic growth, but credit interest rates and the money supply have a negative effect. While the indirect effect of taxes and government spending on economic growth through unemployment and investment has a negative effect, interest rates and the money supply have a positive effect.

FISCAL ADJUSTMENT: ASSESSING THE SUCCESS AND IMPACT IN CASE OF PAKISTAN

This study intends to evaluate the effectiveness of fiscal reforms in lowering the national debt and their effects on Pakistan's economic growth. Findings from such an investigation of the composition of fiscal adjustment show that while spending-based consolidation significantly lowers the debt-to-GDP ratio, it has a contractionary effect on the economy as a whole. This brings to light an important feature of Pakistan's public expenditure structure: while adopting austerity measures, the government prefers to reduce capital spending on items that are less politically contentious. Additional findings showed that, despite playing a significant role in producing an expansionary effect, modifications to current spending do not successfully reduce public debt. Even though descriptive analyses cannot prove a cause-and-effect relationship, success seems to be impacted by tax-side adjustments. Similar to this, the structure of direct and indirect taxes also raises the possibility of fiscal adjustment success. According to the analysis, the composition of direct taxes has minimal bearing on both the success and impacts. To minimize adverse effects, the government should rely on spending-based adjustments. In addition, altering the ratio of government spending in favor of capital investment is probably going to spur economic growth and help the nation meet its MDGs. Keywords: Fiscal Adjustment; Success; Impact; Public Debt; GDP Growth; Millennium Development Goals

Analysis of sources of assets of the national fund of Kazakhstan and assessment of its efficiency

The article examines the assets of the national fund of Kazakhstan and its dynamics from 2005 to 2020, analyzes the sources of its formation and evaluates the effectiveness of the use of assets. The main sources for the formation of the fund’s assets are direct taxes from organizations in the oil sector and investment income from management. Since 2016, the funds of the national fund in the form of aggregate transfers have already been used and directed to support the country’s economy in the face of an unfavorable price environment for commodities. To assess the performance of the fund and its effectiveness from 2001 to 2020, we calculated such indicators as accumulated profitability, arithmetic and geometric mean returns, portfolio standard deviation, variation coefficient, average risk premium, Sharpe ratio. The key indicators of risk and return of the fund’s foreign exchange portfolio are also compared with the indicators of the Norwegian oil fund. As a result of the comparison, valuable recommendations and conclusions were made on the structure of the fund’s portfolio. The Fund needs to gradually increase the share of investments in risky financial instruments such as shares of foreign companies in order to increase the overall return of the fund. The total transfers of the fund in relation to GDP for the last 10 years have been estimated and the forecast for the size of the fund at the end of 2022 has been made. The size of the fund is still at a sufficient level and is a reliable safety cushion for the economy of Kazakhstan during periods of adverse external factors

ANALYSIS OF DIRECT TAXES AND GROSS DOMESTIC PRODUCT OF THE KENYAN ECONOMY

<p>Gross Domestic Product acts as an indicator of the economic growth of a country. To enhance economic growth, the government must initiate development that would spur such growth. Gross Domestic Product represents the rise or fall in per capita income. To facilitate such development, the government should ensure consistent income through taxation. The purpose of this study was to establish the relationship between direct taxes and the Gross Domestic Product of the Kenyan economy. The independent variable was direct tax while the dependent variable was real Gross Domestic Product. The Benefit theory of taxation was used in the study. Time series data collected from Economic Survey for 21 years covering the period 1999-2020 was used in the study. The data was analyzed using inferential statistics. The results showed that direct tax accounted for 84% of real GDP during the period under study (R2=.85) ad that there was a strong positive correlation between direct tax and real GDP (R=.916). Moreover, it was revealed that a unit standard increase in direct tax would significantly lead to .916 increase in real GDP (ß=.916, p<0.05). In conclusion, the study failed to accept the null hypothesis and concluded that Direct Taxes have a significant relationship with the Real Gross Domestic Product of the Kenyan economy. The study recommended that government should ensure an effective and efficient way of collecting and utilizing direct taxes since they have a direct bearing on the growth of the economy.</p><p><strong> </strong></p><p><strong>JEL</strong>: O10; O40</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0937/a.php" alt="Hit counter" /></p>

Is redistributive policy of EU welfare state effective in tackling income inequality? A panel data analysis

Research background: Income inequality has risen sharply since the 1990s, despite the increase in the average size of redistribution in countries representing different welfare state models. The problem of increasing income inequality is currently a challenge for the EU economies, not only with well-established liberal traditions, but also with conservative and social-democratic ones. Therefore, it is worth conducting research on the redistributive effects of fiscal policy. Purpose of the article: The article aims to show the redistributive effects of fiscal policy, paying particular attention to the most characteristic trends in redistribution, which are responsible for the growing income inequality. An overview of the fiscal instruments ? mainly personal income tax and benefit systems ? along with an empirical research on their potential impact on income inequality, allows for conclusions to be drawn about the effectiveness of redistributive policy in the EU countries. Methods: Both descriptive analysis and panel data analysis is implemented to examine the effectiveness of redistributive policy in tackling income inequality in the EU?28 countries in years 2005?2017. Findings & value added: Based on the panel analysis, it has been found that social transfers were much more effective than direct taxes in combating income inequality. In addition, the largest increase in income inequality ? as previously assumed ? was observed in the liberal welfare states, while the smallest in the social democratic welfare states. The empirical analysis extends the existing knowledge on main weaknesses of fiscal welfare state, indicating the required changes that may improve both its equity and efficiency.

Tax regulation of enterprise R&D expenditures: special aspects and problems of regulation

The subject of the research is a corporate income tax regime of tax accounting of intangible assets and R&D spending. The working hypothesis is that realization of the regulative potential of tax policy in relation to stimulating R&D activity and creation of intangibles assets shall be streamlined and adapted to increase the effectiveness of innovations. Authors suggest that the key tax policy goal of the mechanism is the widening of the volumes of commercialized R&D results and intangibles, lowering the tax risks, and increasing the legal certainty. The aim of this research is formulation of tax policy proposals for subsequent reforming this mechanism of direct taxation of transactions related with R&D.To achieve the aim of the research the following research approach was employed by the authors. As a first step authors present a literature review on the issue. As a second step authors are performing the analysis of current rules related to tax accounting of R&D costs and intangibles in accordance with Tax Code of Russian Federation. As a third step authors delineate the barriers and legal obstacles in the performance of tax incentives for R&D by reviewing the judicial cases and analytical reports on the issue. Finally, authors formulate their tax policy proposals for the subsequent tax reforms in relation to tax accounting of R&D.The results and the scope of the study. Author’s working hypothesis is based on the idea that the effective application of tax policy instruments can contribute to success of the jurisdiction in winning in global tax competition game. This is particularly important in context of digitalization and for attracting investments and parts of activities of multinational enterprises to the territory of the state. Intangible assets and key people which coordinate the processes of the creation of intangibles can be regarded as the crucial value-added factors in the modern economy where technological MNEs are increasingly dominating. Countries compete internationally for these talented people and favorable and certain tax regime can positively impact on MNE decisions to make a profit center in any jurisdiction, while tax uncertainty can negatively impact this decision.Conclusions. One of the key results of this research is that R&D tax incentives in Russia remain rather unpopular instrument in corporate practice. Authors explain this with the existing legal barriers and legal uncertainty. This uncertainty leads to tax risks for taxpayers which impacts their decisions for using the incentives. Review of judicial cases related to tax accounting of R&D costs when calculating corporate income tax base showed that there are many different areas of disputes between taxpayers and tax authorities. It is important to note that some of this uncertainty is already addressed in recent amendments to Article 262 of Tax Code. Authors propose to reduce uncertainty by extending the scope of R&D tax incentives to all types of R&D activity. The goal of the research is therefore can be considered as achieved.

ANALISIS PENYELESAIAN ISU PEMAJAKAN EKONOMI DIGITAL: STUDI KASUS GOOGLE ASIA PACIFIC Pte Ltd.

Digitalization raises taxation issues for the market jurisdiction authority including Indonesia, both on the aspect of direct taxation and indirect taxation, due to the capability of the digital multinational entities (MNEs) to avoid physical presence to exercise a transaction with the customer in the market jurisdiction. In terms of indirect taxation, issues raised by Google Asia Pacific Pte Ltd (Singapore) related to the business to customer (B2C) model on service and intangible transactions to the consument in Indonesia, especially the nonregistered taxable business consument (nonPKP). In general, the consumption of services and intangibles from abroad by resident in Indonesia is taxed using the mechanism of reverse charge. Due to its ineffectivity and ineffeiciency at the implementation, in 2020, Indonesia government appointed several nonresident MNE including Google Asia Pacific Pte Ltd (Singapore) to collect the VATs. Meanwhile, issue in direct taxation raised by Google Asia Pacific is due to the provision of Indonesia and Singapore tax treaty that still oblige the degree of physical presence to measure the existence of permanent establishment. After the publication of BEPS Action 1: Final Report (2015), the Indonesian government has made several policy decisions, both in terms of domestic regulations to the international realm, such as the signing of multilateral instruments (MLI) and tax treaty negotiation. In addition, currently a negotiation is underway regarding the consensus on digital economy taxation proposals known as the two pillars. One of the proposals initiated was the first pillar proposal (unified approach) which focus on updating rules related to nexus and profit allocation. The purpose of this study is to identify the alternative for VAT and income taxation against Google Asia Pacific Ltd by considering the principles of international taxation. The research used qualitative method with a case study approach. The research data were collected using literature study.

Twin Deficit Challenge: An Evidence from Pakistan Economy

To investigate “Twin Deficit Challenge: An Evidence from Pakistan Economy” this study employed SAM 2010-11 for Pakistan (Dorosh, Niazi, and Nazli, 2015). This study used a static CGE model. The theoretical structure of the core model closely follows the Lofgren et al. (2001) model, with an extension to incorporate commonly observed specifications of a developing country (Naqvi 2011). The study concludes that the lag value of budget deficit and trade deficit are the main factors contributing to the twin deficit. Two experiments were conducted to check the effects. The experiments were conducted on Direct and Indirect tax to remove internal deficit in the economy. The study explored that the internal resources play a vital role in removing the twin deficit gap. The objective of this experiment was to determine the possibility of implementation of direct and indirect tax in the case of Pakistan and to analyze its benefits at the macro and household levels. The findings of the study recommend that budget deficits possess threats to fiscal policy. Results show that a policy mix of sales tax, income tax and government expenditure help to reduce income inequality while it reduces the financial dependency of the economy. Therefore, Pakistan should strive to reduce the budget deficit using a mix of macroeconomic policies.

Capitalism and the Emergence of Civic Equality in Eighteenth-Century France by William H. Sewell, Jr.

In this ambitious book, Sewell argues that the development of capitalism in eighteenth-century France led to the rise of civic equality and its triumph in the Revolution. He calls this work a Marxian analysis, but not that of mid-twentieth-century Marxists. His approach is not like that of Albert Soboul, whose The French Revolution, 1787–1799: From the Storming of the Bastille to Napoleon (New York, 1975) viewed the Revolution as the capture of the state by the bourgeoisie. Rather, his understanding is that commercial capitalism led to the expansion of “commodity-based social relations” in which goods and people were regarded alike as items in a market (7). These new relations challenged and eventually overthrew the old régime of ranks, orders, and privileges.Sewell builds on Habermas’ theoretical analysis to describe how an urban public emerged in the eighteenth century.1 Publishing, theater, music, art, restaurants, cafés, and fashion became public by entering the market. Now they could be enjoyed by anybody with the means to participate, not just a closed elite. In Chapter 4, “The Empire of Fashion,” Sewell describes in fascinating detail how silk manufacturers in Lyon closely tracked Parisian fashion (103–128). Their ability to produce new items increased the profits that they drew from exploiting their workers.The promenade, that very Parisian institution, followed a similar pattern, as Sewell describes in a tour de force of social history. The action moved from the Cours-la-Reine in the early seventeenth century, where only aristocrats could drive their carriages to see and be seen, to the Jardin des Tuileries where anyone could stroll, if suitably dressed. Later the boulevards and Palais Royal became places for promenades where all were welcome, and commerce flourished.Commerce also extended into thought. The pursuit of a career open to talent became possible for writers because of the rise of commercial publishing. The philosophes Voltaire, Denis Diderot, the Abbé Morellet, and Jean-Jacques Rousseau took advantage by publishing attacks on the privileges and restrictions of the old régime, which they saw as violating civic equality and hindering economic growth. Their careers rested on their publications, but earnings from book sales were not enough to give them the incomes that they needed. Added funds came from the celebrity that their writings brought, which attracted patrons—famously for Diderot, Catherine the Great—who entertained and supported them. Sometimes their patrons sought to implement the philosophes’ ideas when they held positions of power.The monarchy’s indebtedness, however, proved intractable to the philosophes’ solutions and eventually led to the Revolution. The government needed to raise taxes, but it faced what Sewell calls a double bind. Increasing the taille, the direct tax paid by the peasants, would make the poorest group in society even poorer. Yet eliminating the privileges of the elites by removing their tax exemptions would undercut the hierarchical principles on which the monarchy was based. Moreover, it would lessen the value of their venal offices, which backed the loans on which the government relied. The philosophes’ proposed reforms, briefly implemented by Controller General Anne-Robert-Jacques Turgot from 1774 to 1776, sought to make the economy more productive, but they were quickly undone. Eventually the only recourse was to call the Estates General, leading to the Revolution. The culmination of the story occurred during the night of August 4, 1789, when the notables in the new National Assembly renounced their privileges, bringing about civic equality, which, once introduced, persisted “in most modern constitutions.… [as] a force for good” (368).Sewell’s book ends as a conventional, not-really-Marxian account of the outbreak of the French Revolution. Its strength derives from its ability to synthesize secondary literature from intellectual, political, social, and economic history seamlessly. Sewell combines this literature with published primary sources to produce a rich description of several realms of French society; intellectual and social biographies of four philosophes; and a political, institutional, and economic narrative of the coming of the French Revolution. He leaves no doubt that commercial relations were expanding through more of society in the eighteenth century and that the belief in civic equality had become central to political thought by the time of the Revolution.