The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria
Abstract: Inequality in Latin America remains scandalously high but has improved remarkably in the last decade. Multiple reasons for this inequality reduction have been posited, but until now few have inquired as to the role of tax policy in this decline. Therefore, in this dissertation I attempt t...
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| Formato: | Trabajo de grado (Bachelor Thesis) |
| Lenguaje: | Desconocido (Unknown) |
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2015
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| Acceso en línea: | http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/849 |
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ir-p17054coll23-8492020-09-29 The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria Valdés Valencia, María Fernanda Abstract: Inequality in Latin America remains scandalously high but has improved remarkably in the last decade. Multiple reasons for this inequality reduction have been posited, but until now few have inquired as to the role of tax policy in this decline. Therefore, in this dissertation I attempt to fill this gap by investigating whether tax policy in Latin America has been more pro-equity during the recent period of declining inequality in comparison with the period of high and increasing inequality in the 1990s, such that it might have contributed to the decline in inequality observed in recent years. To answer this question, this dissertation begins by explaining, using both empirical and theoretical arguments, the importance of looking at taxation to explain changes in inequality. It then defines pro-equity taxation as dependent on three factors – collection, progressivity and cyclicality – and proposes measuring these factors using a novel methodology consisting of adjusting tax variables to business and commodity cycles. Using case studies of the five largest commodity-dependent economies in the region – Argentina, Chile, Colombia, Mexico and Peru – this study derives the conclusion that, although some improvements were made, particularly in cyclicality, the authorities’ use of the tax instrument when inequality was declining was no more pro-equity than in the 1990s, when inequality was high and increasing. This suggests that the inequality reduction was not achieved as a result of the tax policy pursued, but mainly in spite of it. It suggests as well that tax policy as an instrument for reducing inequality remains underused in the region and therefore much remains to be done -and certainly can be done- in the tax arena. Resumen: La desigualdad en América Latina sigue siendo escandalosamente alta pero se ha reducido. Este documento se pregunta si esta reducción ha tenido algo que ver con los impuestos. Luego de un análisis de 5 casos de estudios (Argentina, Chile, Colombia, México y Peru) este estudio concluye que la forma en que se usaron los impuestos no han cambiado en los últimos años. Esto sugiere que la reducción de desigualdad no está relacionada con una nueva forma de hacer impuestos. Inequality; Taxation; Tax policy; Progressivity; Tax reforms; Inequidad; Impuestos; Tributación; Política tributaria; Progresividad; Reformas tributarias Ciencias sociales; Ciencias sociales / Economía 2015 PDF Tesis ENG - Inglés América Latina Colfuturo © Derechos reservados del autor http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/849 |
| institution |
Biblioteca Virtual Banco de la República - Colecciones digitales |
| collection |
Custom |
| language |
Desconocido (Unknown) |
| topic |
Inequality; Taxation; Tax policy; Progressivity; Tax reforms; Inequidad; Impuestos; Tributación; Política tributaria; Progresividad; Reformas tributarias Ciencias sociales; Ciencias sociales / Economía |
| spellingShingle |
Inequality; Taxation; Tax policy; Progressivity; Tax reforms; Inequidad; Impuestos; Tributación; Política tributaria; Progresividad; Reformas tributarias Ciencias sociales; Ciencias sociales / Economía Valdés Valencia, María Fernanda The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| description |
Abstract:
Inequality in Latin America remains scandalously high but has improved remarkably in the last decade. Multiple reasons for this inequality reduction have been posited, but until now few have inquired as to the role of tax policy in this decline. Therefore, in this dissertation I attempt to fill this gap by investigating whether tax policy in Latin America has been more pro-equity during the recent period of declining inequality in comparison with the period of high and increasing inequality in the 1990s, such that it might have contributed to the decline in inequality observed in recent years. To answer this question, this dissertation begins by explaining, using both empirical and theoretical arguments, the importance of looking at taxation to explain changes in inequality. It then defines pro-equity taxation as dependent on three factors – collection, progressivity and cyclicality – and proposes measuring these factors using a novel methodology consisting of adjusting tax variables to business and commodity cycles. Using case studies of the five largest commodity-dependent economies in the region – Argentina, Chile, Colombia, Mexico and Peru – this study derives the conclusion that, although some improvements were made, particularly in cyclicality, the authorities’ use of the tax instrument when inequality was declining was no more pro-equity than in the 1990s, when inequality was high and increasing. This suggests that the inequality reduction was not achieved as a result of the tax policy pursued, but mainly in spite of it. It suggests as well that tax policy as an instrument for reducing inequality remains underused in the region and therefore much remains to be done -and certainly can be done- in the tax arena.
Resumen:
La desigualdad en América Latina sigue siendo escandalosamente alta pero se ha reducido. Este documento se pregunta si esta reducción ha tenido algo que ver con los impuestos. Luego de un análisis de 5 casos de estudios (Argentina, Chile, Colombia, México y Peru) este estudio concluye que la forma en que se usaron los impuestos no han cambiado en los últimos años. Esto sugiere que la reducción de desigualdad no está relacionada con una nueva forma de hacer impuestos. |
| format |
Trabajo de grado (Bachelor Thesis) |
| author |
Valdés Valencia, María Fernanda |
| author_facet |
Valdés Valencia, María Fernanda |
| author_sort |
Valdés Valencia, María Fernanda |
| title |
The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| title_short |
The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| title_full |
The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| title_fullStr |
The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| title_full_unstemmed |
The recent inequality reduction in Latin America: The role of tax policy = La reciente reducción de la desigualdad en América Latina: el rol de la política tributaria |
| title_sort |
recent inequality reduction in latin america: the role of tax policy = la reciente reducción de la desigualdad en américa latina: el rol de la política tributaria |
| publishDate |
2015 |
| url |
http://babel.banrepcultural.org/cdm/ref/collection/p17054coll23/id/849 |
| _version_ |
1682460064961527808 |
| score |
12,131701 |