Taxation and inequality in the Americas: Changing the fiscal contract?

Bird, Richard M.; Zolt, Eric M.

doi:10.4337/9781783474332.00014

Cited by 9 publications

(5 citation statements)

References 72 publications

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“…Tax changes in the 2000s were promoted by many factors. First, the positive economic performance in the 2000s contributed to generate more and better jobs, a new middle class that in turn promoted an expansion of the tax base (Bird & Zolt, 2013). Second, over the same period, the positive evolution of external conditions heavily influenced Latin American economies (Fricke & Süssmuth, 2014).…”

Section: Factors Promoting Tax Changes In the 2000smentioning

confidence: 99%

Taxation and Inequality in Developing Countries - Lessons from the Recent Experience of Latin America

Martorano¹

2016

SSRN Journal

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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.

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Section: Factors Promoting Tax Changes In the 2000smentioning

confidence: 99%

Taxation and Inequality in Developing Countries - Lessons from the Recent Experience of Latin America

Martorano¹

2016

SSRN Journal

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“…A new "fiscal pact" is sought to contribute to a more equitable society, after the eighties witnessed the introduction of VAT and the flattening of income tax schedules. These early changes contributed to strengthen the tax administration, which may be a positive legacy to present developments (Bird and Zolt, 2013). The order is contrary to that of Spain, where direct taxation was reformed in a first step, following the economic thought of the sixties, and to a certain extent lacked the capacity to be enforced.…”

Section: How Different Was Spain From Other Countries?mentioning

confidence: 56%

A Fiscal Revolution? Progressivity in the Spanish Tax System, 1960-1990

Hetland

2014

SSRN Journal

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The main objective of this paper is to calculate the distribution of the tax burden across income levels in Spain between 1960 and 1990. The chosen period covers the final years of Franco's dictatorship and the first ones of the present parliamentary regime, and is thus meant to explore how political change was reflected on taxation. Does transition entail a fiscal revolution? Here is one case study developed and compared to other national experiences. Effective tax reform seems to have been politically blocked during the dictatorship, with public budgets growing fundamentally on the grounds of social security contributions. Democracy brought about a comprehensive transformation starting in 1977, which aimed at improving fairness (progressivity) and increasing revenue (to fund the development of the Welfare State). In this work I analyse whether the reforms entailed effective changes in the distribution of the tax burden, by imputing tax collection to taxpayers, based on income and consumption micro-data from Household Budget Surveys. The results show a persistent (albeit decreasing) regressivity in the tax system, which caused an increasingly negative redistribution of income. Pre-Tax incomes grew unequal during the period and net incomes even more so as a result: the tax reform did not fulfill its equalizing promises. The joint effect of the fiscal system, however, seems to have been slightly positive due to progressive social spending.MAIN RESULT: The Spanish tax system is shown to overburden low income families, maybe negatively affecting their economic activity -in addition to social cohesion. A simpler design could attain a progressive distribution of the tax burden reducing costs in administration, incentives to evasion, or alienation of taxpayers.JEL Codes: D31, N34, N44, H23

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“…Moreover, fiscal policy can promote social equity by providing access to essential services such as education, healthcare, and housing for marginalized communities (Bird, 2010). However, achieving social equity through fiscal policy requires addressing institutional barriers and vested interests that perpetuate inequality .…”

Section: Discussionmentioning

confidence: 99%

Sustaining Prosperity: Exploring Fiscal and Financial Sustainability in the Context of Dynamic Fiscal Policy

Limoa,

Weku

2024

AMFR

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Purpose: This study explores how fiscal policy and financial sustainability support sustainable economic prosperity amid global instability. It examines the impact of government taxation and spending decisions on economic outcomes, aggregate demand, employment, inflation, social welfare, infrastructure development, and income inequality. Financial sustainability is analyzed through prudent fiscal management and debt sustainability, focusing on long-term government finance viability and mitigating fiscal risks. Research Design and Methodology: The study employs a qualitative methodology, incorporating a comprehensive literature review of theoretical works, empirical studies, and policy analyses. Data is collected through systematic reviews of scholarly articles, books, policy reports, and official publications. Thematic analysis techniques, including coding and categorization, synthesize findings, with reflexivity to consider assumptions and biases. Findings and Discussion: The research underscores the importance of flexibility and adaptability in fiscal policy, highlighting automatic stabilizers and countercyclical policies for economic stabilization and sustainable growth. Prudent debt management, including debt restructuring and fiscal consolidation, is vital for mitigating fiscal risks and ensuring debt sustainability. The findings emphasize integrating fiscal sustainability with broader economic and social goals and the need for institutional reforms and international cooperation to enhance fiscal governance. Implications: The study provides insights for policymakers on the importance of fiscal prudence and sustainability. It advocates for a balanced approach that addresses short-term stabilization and long-term goals and calls for institutional reforms to improve fiscal discipline, transparency, and accountability. By integrating interdisciplinary perspectives, policymakers can develop resilient and sustainable fiscal policies that promote long-term prosperity and social equity.

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Taxation and inequality in the Americas: Changing the fiscal contract?

Cited by 9 publications

References 72 publications

Taxation and Inequality in Developing Countries - Lessons from the Recent Experience of Latin America

Taxation and Inequality in Developing Countries - Lessons from the Recent Experience of Latin America

A Fiscal Revolution? Progressivity in the Spanish Tax System, 1960-1990

Sustaining Prosperity: Exploring Fiscal and Financial Sustainability in the Context of Dynamic Fiscal Policy

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