Taxation and Inequality in Developing Countries: Lessons from the Recent Experience of Latin America. (13th March 2018)

• Record Type: Journal Article
• Authors: Martorano, Bruno
• Other Names: Addison Tony guestEditor.; Niño‐Zarazúa Miguel guestEditor.; Pirttilä Jukka guestEditor.
• Is Part Of: Journal of international development. Volume 30:Number 2(2018:Mar.)
• Page Start: 256
• Page End: 273
• Publication Date: 2018-03-13
• Subjects: tax policy -- inequality -- redistribution -- Latin America; Economic development projects -- Developing countries -- Periodicals; Developing countries -- Economic policy -- Periodicals; Developing countries -- Foreign economic relations -- Periodicals; Economic development -- Periodicals; 330.91724
• DOI: 10.1002/jid.3350
• Languages: English
• ISSNs: 0954-1748

Abstract

Abstract: This paper aims to advance understanding about the relationship between taxation and inequality in developing countries, focusing on the recent experience of Latin America. Tax changes promoted equality since the early 2000s. In particular, the increasing contribution of direct taxes with respect to indirect taxes promoted the progressivity of the tax system and contributed to the reduction of inequality. Yet the effectiveness of taxation in promoting equality in Latin America is still limited by several factors such as the low average tax revenue, the inability to tax top incomes and the low contribution of taxes on property. © 2018 UNU‐WIDER. Journal of International Development published by John Wiley & Sons, Ltd.