Tax Reforms in Latin America (Mahon)

Tax incidence and tax reforms in Latin America by James E. Mahon (11/2012), indicated by Rafael C. Barroso. “The paper provides an overview of the recent literature about the impact of taxation on inequality in the region, reviewing the major conclusions of recent empirical work and comparing Latin America to other regions of the world. Among the findings it highlights are that fiscal systems have become somewhat more redistributive since 2000, but that the major pillar of revenue, that Value Added Tax, is regressive. Moreover, as a percentage of GDP, Latin American countries collect less in revenue from individual income taxes than any other regions of the world.”