Business Groups, Tax Efficiency, and Regressivity in Colombia

  • Néstor Castañeda
Part of the Latin American Political Economy book series (LAPE)


Castañeda discusses the role of business interest groups in tax policymaking. Using the case of Colombia, he argues that tax policy is a limited tool to promote economic growth and redistribution in Latin America because business interest groups have effectively opposed progressive taxation and have also transferred the cost of taxation to low- and middle-income tax payers. In line with the literature on fiscal contract, Castañeda shows that the political equilibrium between policymakers and business interest groups in Colombia make progressive and structural tax reforms very unlikely. The case of Colombia is very illustrative of the problems that Latin American governments face to implement progressive tax reforms.


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Néstor Castañeda
    • 1
  1. 1.University College LondonLondonUK

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