Nussbaum's philosophical concept of social justice in the fiscal realm

This chapter explores whether Martha Nussbaum’s capability approach can provide a foundation for social justice in the tax realm, with a particular focus on the position of persons with disabilities. It begins by contrasting the capabilities framework with the reciprocity-based logic of social contract theory and its resource-oriented conception of distributive justice, arguing that classical contractarian thought insufficiently accounts for individuals who cannot fully participate in productive economic life. The chapter then outlines the central elements of the capability approach, its emphasis on human dignity, substantive freedoms, and a constitutionally grounded list of core capabilities, and examines the challenges posed by Nussbaum’s threshold of sufficiency. Against this background, it analyses the implications for taxation as a tool of redistribution, assessing the alignment and tension between capability theory and core tax principles. While the capabilities approach cannot be directly translated into a tax base or rate structure, it offers a normative touchstone for evaluating the distributive outcomes of tax policy, particularly in relation to economically dependent and disabled persons.