Advertisement

Introduction: Taxation in Times of Uncertainty in Latin America

  • Jorge Atria
  • Constantin Groll
  • Maria Fernanda Valdés
Chapter
Part of the Latin American Political Economy book series (LAPE)

Abstract

This chapter introduces three dimensions of taxation frequently neglected in the analysis of tax systems in Latin America. The relational, historical, and transnational dimensions of taxation presented in this chapter enable us to explore the social, political, and economic embeddedness of taxation. This perspective is of great importance as tax regimes face significant changes caused by a new moment of uncertainty in the region. Decreasing economic growth, high unemployment and inflation, falling global commodity prices, and political and social turmoil call for reforms in taxation and expose the persistent challenges in Latin American tax systems. Even after more than a decade of outstanding economic development, tax systems collect comparatively less revenue, are dependent on volatile tax bases, inefficient, and do not contribute to tackle income inequality. After presenting the relational, historical, and transnational dimensions of taxation and their gains for tax analysis, the contributions of the book are summarized.

References

  1. Altamonte, H., & Sanchez, R. (2016). Hacia una nueva gobernanza de los recursos naturales en América Latina y el Caribe. Santiago de Chile: CEPAL.CrossRefGoogle Scholar
  2. Ardanaz, M., & Scartascini, C. (2013). Inequality and Personal Income Taxation: The Origins and Effects of Legislative Malapportionment. Comparative Political Studies, 46(12), 1636–1663. https://doi.org/10.1177/0010414013484118 CrossRefGoogle Scholar
  3. Ardant, G. (1975). Financial Policy and Economic Infrastructure of Modern States and Nations. In C. Tilly (Ed.), The Formation of National States in Western Europe. Princeton, NJ: Princeton University Press.Google Scholar
  4. Arnson, C. J., Bergman, M., & Frigenti, L. (2011). Taxation and equality in Latin America. Washington, DC: Woodrow Wilson Center.Google Scholar
  5. Atria, J. (2014). Tributación en sociedad : impuestos y redistribución en el Chile del siglo XXI. Santiago de Chile: Uqbar Editores.Google Scholar
  6. Bárcena, A., & Kacef, O. (2011). La política fiscal para el afianzamiento de las democracias en América Latina [Reflexiones a partir de una serie de estudios de caso, Documento de proyecto LC/W No. 409]. Santiago de Chile: CEPAL – Comisión Económica para América Latina y el Caribe.Google Scholar
  7. Bárcena, A., Prado, A., & Hopenhayn, M. (2010). La hora de la igualdad: brechas por cerrar, caminos por abrir. Santiago, Chile: CEPAL – Comisión Económica para América Latina y el Caribe.Google Scholar
  8. Biehl, A., & Vera, G. (2014). Tecnología, Instituciones y Presión Tributaria en las Actividades Extractivas: el caso de la minería en Chile. In J. Atria (Ed.), Tributación en Sociedad: Impuestos y Redistribución en el Chile del Siglo XXI. Santiago de Chile: Uqbar Editores.Google Scholar
  9. Bird, R. M., & Zolt, E. M. (2015). Fiscal Contracting in Latin America. World Development, 67, 323–335.CrossRefGoogle Scholar
  10. Bogliaccini, J. A., & Luna, J. P. (2016). Deflecting My Burden, Hindering Redistribution. WIDER Working Paper No. 2016/92. Helsinki: UNU-WIDER.Google Scholar
  11. Bräutigam, D., Fjeldstad, O.-H., & Moore, M. (2008). Capacity and Consent: Taxation and State Building in Developing Countries. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  12. Burgess, R., & Stern, N. (1993). Taxation and Development. Journal of Economic Literature, 31(2), 762–830.Google Scholar
  13. Campbell, J. (1993). The State and Fiscal Sociology. Annual Review of Sociology, 19, 163–185.CrossRefGoogle Scholar
  14. Campbell, J. (2009). Epilogue: A Renaissance for Fiscal Sociology?. In I. Martin, A. K. Mehrotra, & M. Prasad (Eds.), The New Fiscal Sociology: Taxation in Comparative and Historical Perspective (p. 256). Cambridge: Cambridge University Press.Google Scholar
  15. Cardoso, F. H., & Faletto, E. (1972). Dependency and Development in Latin America. New Left Review, 74(July–August), 83–95.Google Scholar
  16. Carriere-Swallow, Y., Jácome, L. I., Magud, N. E., & Werner, A. M. (2016). Central Banking in Latin America: The Way Forward. IMF Working Papers, 16(196). Retrieved from https://papers.ssrn.com/abstract=2882634
  17. Castañeda, N. (2017). Business Coordination and Tax Politics. Political Studies, 65(1), 122–143. https://doi.org/10.1177/0032321715616287 CrossRefGoogle Scholar
  18. Centeno, M. A. (2002). Blood and Debt: War and the Nation-State in Latin America. University Park: Pennsylvania State University Press.Google Scholar
  19. CEPAL. (2010). Estudio económico de América Latina y el Caribe 2009–2010: el impacto distributivo de las políticas públicas. Santiago de Chile: CEPAL.Google Scholar
  20. CEPAL, C. E. para A. L. y el C. (2015). Estudio Económico de América Latina y el Caribe 2015: desafíos para impulsar el ciclo de inversión con miras a reactivar el crecimiento. Santiago, Chile: United Nations Publications.Google Scholar
  21. CEPAL, C. E. para A. L. y el C. (2017). Panorama Fiscal de América Latina y el Caribe 2017: la movilización de recursos para el financiamiento del desarrollo sostenible. Santiago de Chile: United Nations Publications.Google Scholar
  22. Corbacho, A., Cibils, V. F., & Lora, E. (2013). More Than Revenue: Taxation as a Development Tool. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  23. Cornia, G. A., Gómez-Sabaini, J. C., & Martorano, B. (2014). Tax Policy and Income Distribution During the Last Decade. In G. A. Cornia (Ed.), Falling Inequality in Latin America: Policy Changes and Lessons (pp. 295–318). Oxford: Oxford University Press.CrossRefGoogle Scholar
  24. De Ferranti, D., Perry, G., Ferreira, F., Walton, M. (2004). Inequality in Latin America: Breaking with History? World Bank Latin American and Caribbean Studies. Washington, DC: World Bank Publications. Google Scholar
  25. Di John, J. (2006). The Political Economy of Taxation and Tax Reform in Developing Countries. Research Paper, UNU-WIDER, United Nations University (UNU).Google Scholar
  26. Diaz Yubero, F., Pecho, M., Cremades, L., Vázquez, O., Velayos, F., & Barreix, A. D. (2013). State of the Tax Administration in Latin America: 2006–2010. Retrieved from http://publications.iadb.org/handle/11319/3506
  27. Dunning, T. (2008). Crude Democracy: Natural Resource Wealth and Political Regimes. Cambridge; New York: Cambridge University Press.CrossRefGoogle Scholar
  28. Elias, N. (1992). Figuration. In Grundbegriffe der Soziologie (pp. 88–91). Springer, Wiesbaden.Google Scholar
  29. Fairfield, T. (2010). Business Power and Tax Reform: Taxing Income and Profits in Chile and Argentina. Latin American Politics and Society, 52(2), 37–71. https://doi.org/10.1111/j.1548-2456.2010.00081.x CrossRefGoogle Scholar
  30. Fairfield, T. (2015). Private Wealth and Public Revenue. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  31. Focanti, D., Hallerberg, M., & Scartascini, C. (2016). Tax Reforms in Latin America in an Era of Democracy. Latin American Research Review, 51(1), 132–158. https://doi.org/10.1353/lar.2016.0003 CrossRefGoogle Scholar
  32. Gaisbauer, H. P., Schweiger, G., & Sedmak, C. (2013). Ethical Obligations of Wealthy People: Progressive Taxation and the Financial Crisis. Ethics and Social Welfare, 7(2), 141–154. https://doi.org/10.1080/17496535.2013.779003 CrossRefGoogle Scholar
  33. Gaisbauer, H. P., Schweiger, G., & Sedmak, C. (2015). Outlining the Field of Tax Justice. In H. P. Gaisbauer, G. Schweiger, & C. Sedmak (Eds.), Philosophical Explorations of Justice and Taxation (pp. 1–14). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-13458-1_1 Google Scholar
  34. Genschel, P. (2002). Globalization, Tax Competition, and the Welfare State. Politics & Society, 30(2), 245–275.CrossRefGoogle Scholar
  35. Girouard, N., & Price, R. W. (2004). Asset Price Cycles, “One-Off” Factors and Structural Budget Balances. Paris: Organisation for Economic Co-operation and Development.CrossRefGoogle Scholar
  36. Gloppen, S., & Rakner, L. (2002). Accountability Through Tax Reform? Reflections from Sub-Saharan Africa. IDS Bulletin, 33(3), 1–17.CrossRefGoogle Scholar
  37. Goldscheid, R., Schumpeter, J. A., & Hickel, R. (1976). Die Finanzkrise des Steuerstaats: Beiträge zur politischen Ökonomie der Staatsfinanzen (1st ed.). Frankfurt am Main: Suhrkamp.Google Scholar
  38. Gómez Sabaini, J. C., & Jiménez, J. P. (2012). Tax Structure and Tax Evasion in Latin America. Serie Macroeconomía del Desarrollo No. 118. Santiago de Chile: CEPAL.Google Scholar
  39. Gómez Sabaini, J. C., Jiménez, J. P., & Martner Fanta, R. (2017). Consensos y conflictos en la política tributaria de América Latina. Santiago de Chile: CEPAL.Google Scholar
  40. Gómez Sabaini, J. C., & Morán, D. (2016). Evasión tributaria en América Latina: nuevos y antiguos desafíos en la cuantificación del fenómeno en los países de la región (172). Santiago de Chile: CEPAL.Google Scholar
  41. González, D. (2009). La política tributaria heterodoxa en los países de América Latina. Santiago de Chile: Cepal.Google Scholar
  42. Grimson, A., & Roig, A. (2011). Las percepciones sociales de los impuestos. In J. Nun (Ed.), La desigualdad y los impuestos II: materiales para la discussion. Buenos Aires: Capital Intelectual.Google Scholar
  43. Grown, C., & Valodia, I. (2010). Taxation and Gender Equity: A Comparative Analysis of Direct and Indirect Taxes in Developing and Developed Countries (IRC, Vol. 58). London; New York: Routledge.Google Scholar
  44. Hanni, M., Martner Fanta, R., & Podestá, A. (2015). El potencial redistributivo de la fiscalidad en América Latina. Revista Cepal, 116, 7–26.Google Scholar
  45. Howard, C. (2009). Making Taxes the Life of the Party. In I. W. Martin, A. K. Mehrotra, & M. Prasad (Eds.), The New Fiscal Sociology: Taxation in Comparative and Historical Perspective. Cambridge: Cambridge University Press.Google Scholar
  46. IDB, CIAT, ECLAC, & OECD. (2015). Revenue Statistics in Latin America and the Caribbean 2015. Revenue Statistics in Latin America and the Caribbean. Paris: OECD Publishing.Google Scholar
  47. IDB, CIAT, ECLAC, & OECD. (2016). Revenue Statistics in Latin America and the Caribbean 2016. Paris: OECD Publishing. https://doi.org/10.1787/rev_lat_car-2016-en-fr Google Scholar
  48. IDB, CIAT, ECLAC, & OECD. (2017). Revenue Statistics in Latin America and the Caribbean 2017. Paris: Organisation for Economic Co-operation and Development.Google Scholar
  49. ILO, I. L. O. (2016). Panorama Laboral 2016 de América Latina y el Caribe. Lima: OIT/Oficina Regional para América Latina y el Caribe. Retrieved from “http://www.ilo.org/americas/publicaciones/panorama-laboral/WCMS_537803/lang--en/index.htm”
  50. IMF, I. M. F. (2017). World Economic Outlook: Update (p. 7). Washington, DC. Retrieved from https://www.imf.org/external/pubs/ft/weo/2017/update/01/pdf/0117.pdf
  51. Justino, P., & Martorano, B. (2016). Inequality, Distributive Beliefs and Protests: A Recent Story from Latin America. IDS Working Paper No. 467. Institute of Development Studies. Brighton, UK.Google Scholar
  52. Leicht, K. T., & Jenkins, C. (2007). New and Unexplored Opportunities: Developing a Spatial Perspective for Political Sociology. In L. M. Lobao, G. Hooks, & A. R. Tickamyer (Eds.), The Sociology of Spatial Inequality (pp. 63–84). Albany, NY: SUNY Press.Google Scholar
  53. Levi, M. (1988). Of Rule and Revenue. Berkeley: University of California Press.Google Scholar
  54. Lieberman, E. S. (2003). Race and Regionalism in the Politics of Taxation in Brazil and South Africa. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  55. Luna, J. P., Murillo, M. V., & Schrank, A. (2014). Latin American Political Economy: Making Sense of a New Reality. Latin American Politics and Society, 56(1), 3–10.Google Scholar
  56. Mahon, J. E. (2004). Causes of Tax Reform in Latin America, 1977–95. Latin American Research Review, 39(1), 3–30.CrossRefGoogle Scholar
  57. Mahon, J., Jr., Bergman, M., & Arnson, C. (2015). Progressive Tax Reform and Equality in Latin America. Washington, DC: Woodrow Wilson Center Reports on the Americas.Google Scholar
  58. Mankiw, N. G., Weinzierl, M., & Yagan, D. (2009). Optimal Taxation in Theory and Practice. NBER Working Papers, 15071. Cambridge, MA: National Bureau of Economic Research.Google Scholar
  59. Mann, F. K. (1943). The Sociology of Taxation. The Review of Politics, 5(2), 225–235. https://doi.org/10.1017/S0034670500048609 CrossRefGoogle Scholar
  60. Mann, F. K. (1949). Re-orientation Through Fiscal Theory. Kyklos – International Review for Social Sciences, 3(2), 116–129.Google Scholar
  61. Martin, I. W., Mehrotra, A. K., & Prasad, M. (2009). The New Fiscal Sociology: Taxation in Comparative and Historical Perspective. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  62. Marx, K., & Engels, F. (2015). Manifest der kommunistischen Partei. Frankfurt am Main: S. Fischer Verlag.Google Scholar
  63. McCaffery, E. J. (2008). Where’s the Sex in Fiscal Sociology? Taxation and Gender in Comparative Perspective. In I. W. Martin, A. K. Mehrotra, & M. Prasad (Eds.), The New Fiscal Sociology: Taxation in Comparative and Historical Perspective. Cambridge: Cambridge University Press.Google Scholar
  64. Mirrlees, J. A. (1971). An Exploration in the Theory of Optimum Income Taxation. The Review of Economic Studies, 38(2), 175–208.CrossRefGoogle Scholar
  65. Moore, M. (2008). Between Coercion and Contract: Competing Narratives on Taxation and Governance. In D. Bräutigam, O.-H. Fjeldstad, & M. Moore (Eds.), Capacity and Consent: Taxation and State Building in Developing Countries. Cambridge: Cambridge University Press.Google Scholar
  66. Morán, D., & Pecho, M. (2016). La tributación en América Latina en los últimos cincuenta años. Documentos-Instituto de Estudios Fiscales, 18, 1–42.Google Scholar
  67. Murphy, L., & Nagel, T. (2002). The Myth of Ownership: Taxes and Justice. Oxford: Oxford University Press.CrossRefGoogle Scholar
  68. Musgrave, R. A. (1959). The Theory of Public Finance; A Study in Public Economy. New York: McGraw-Hill.Google Scholar
  69. Napoli, E., & Navia, P. (2012). La segunda es la vencida. El caso del royalty de 2004 y del impuesto específico a la gran minería de 2005 en Chile. Gestión Y Política Pública, XXI(1), 141–183.Google Scholar
  70. OECD. (2009). Perspectivas Económicas de América Latina 2009. Washington, DC: OECD Publishing. https://doi.org/10.1787/leo-2009-es Google Scholar
  71. Piketty, T. (2014). Capital in the Twenty-First Century. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
  72. PNUD, P. de las N. U. para el D. (2010). Informe Regional sobre Desarrollo Humano para América Latina y el Caribe 2010: Actuar sobre el futuro: romper la transmisión intergeneracional de la desigualdad. New York: Programa de las Naciones Unidas para el Desarrollo (PNUD).Google Scholar
  73. Rademacher, I. (2013). Tax Competition in the Eurozone: Capital Mobility, Agglomeration, and the Small Country Disadvantage. MPIfG Discussion Paper No. 13. Köln: Max-Planck-Institut für Gesellschaftsforschung.Google Scholar
  74. Ramsey, F. P. (1927). A Contribution to the Theory of Taxation. The Economic Journal, 37(145), 47–61.CrossRefGoogle Scholar
  75. Ross, M. L. (2004). Does Taxation Lead to Representation? British Journal of Political Science, 34(2), 229–249. https://doi.org/10.1017/S0007123404000031 CrossRefGoogle Scholar
  76. Sachweh, P. (2012). The Moral Economy of Inequality: Popular Views on Income Differentiation, Poverty and Wealth. Socio-Economic Review, 10(3), 419–445. https://doi.org/10.1093/ser/mwr023 CrossRefGoogle Scholar
  77. Schneider, A. (2012). State-Building and Tax Regimes in Central America. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  78. Soifer, H. D. (2015). State Building in Latin America. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  79. Sokoloff, K. L., & Zolt, E. M. (2007). Inequality and the Evolution of Institutions of Taxation: Evidence from the Economic History of the Americas. In S. Edwards, G. Esquivel, & G. Marquez (Eds.), The Decline of Latin American Economies: Growth, Institutions, and Crises (pp. 83–138). Chicago: University of Chicago Press.CrossRefGoogle Scholar
  80. Steinmo, S. (1993). Taxation and Democracy: Swedish, British, and American Approaches to Financing the Modern State. New Haven, CT: Yale University Press.Google Scholar
  81. Steinmo, S. (1994). The End of Redistribution? International Pressures and Domestic Tax Policy Choices. Challenge, 37(6), 9–17.CrossRefGoogle Scholar
  82. Swank, D. (2002). Global Capital, Political Institutions, and Policy Change in Developed Welfare States. Cambridge; New York: Cambridge University Press.CrossRefGoogle Scholar
  83. Swank, D. (2006). Tax Policy in an Era of Internationalization: Explaining the Spread of Neoliberalism. International Organization, 60(4), 847–882.CrossRefGoogle Scholar
  84. Swedberg, R. (Ed.). (1991). Joseph A. Schumpeter: The Economics and Sociology of Capitalism. Princeton, NJ: Princeton University Press.Google Scholar
  85. Tanzi, V. (2000). Taxation in Latin America in the Last Decade. Center for Research on Economic Development and Policy Reform, Working Paper, 76, 1–38.Google Scholar
  86. Tanzi, V. (2013). Tax Reform in Latin America: A Long Term Assessment. In XXV Regional Seminar on Fiscal Policy, ECLAC, Santiago (Chile).Google Scholar
  87. Tilly, C. (1985). War Making and State Making as Organized Crime. In D. Rueschemeyer, E. B. Peter, & T. Skocpol (Eds.), Bringing the State Back in. Cambridge: Cambridge University Press.Google Scholar
  88. Torgler, B. (2005). Tax Morale in Latin America. Public Choice, 122(1–2), 133–157. https://doi.org/10.1007/s11127-005-5790-4 CrossRefGoogle Scholar
  89. Valdes, M. F. (2016). Reducing Inequality in Latin America: The Role of Tax Policy. In London. New York: Routledge.Google Scholar
  90. Valdes, M. F., & Groll, C. (2016). What Is Left from the Super Cycle? Commodity Prices and Taxation in 6 Latin American Countries. Working Paper, FU Berlin.Google Scholar
  91. von Schiller, A. (2016). Business Organisations, Party Systems and Tax Composition in Developing Countries: A Comparison between Colombia and Peru. The Journal of Development Studies, 52(12), 1722–1743. https://doi.org/10.1080/00220388.2016.1153074
  92. Waring, M. (1990). If Women Counted: A New Feminist Economics. San Francisco: HarperCollins.Google Scholar
  93. Weber, M. (2002). Wirtschaft und Gesellschaft: Grundriss der verstehenden Soziologie. Tübingen: Mohr Siebeck.Google Scholar
  94. WITS, W. I. T. S. (2016). Database. Retrieved from http://wits.worldbank.org/faqs.html

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Jorge Atria
    • 1
  • Constantin Groll
    • 2
  • Maria Fernanda Valdés
    • 3
  1. 1.Pontificia Universidad Católica de Chile (Chile) & Centre for Social Conflict and Cohesion Studies (COES)SantiagoChile
  2. 2.Freie Universität BerlinBerlinGermany
  3. 3.Friedrich Ebert StiftungBogotáColombia

Personalised recommendations