Ideology and Taxation in Latin America

Abstract

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Remittances and Social Spending

“…I suggest that the answer to these questions lies in the effect remittances have on income levels and the tension that can be found between taxation and consumption in developing economies. In Latin America, social programs and social assistance are funded through taxation, and given the growing informality of the workforce, governments increasingly rely on consumption tax, in addition to income taxes, to raise revenue (Stein and Caro 2013). Therefore, for welfare recipients with higher incomes as a consequence of remittances, a threshold will be reached when the effect of taxation on consumption from remittances outstrips the marginal returns to income from social transfers, resulting in an absence of personal utility from expanded social spending (Meltzer and Richard 1981; see also Rehm 2009; 2011).…”

Party System Institutionalization and Reliance on Personal Income Taxation in Developing Countries

“…In addition, existing studies also show inconsistent results. For instance, whereas Hart () finds evidence that in Latin America, left‐leaning governments tax less than right‐leaning ones, the findings of Stein and Caro ()—based on a broader sample and newer data, as well as additional indicators for partisan ideology—contradict these results.…”

El Impuesto sobre la Renta Personal y los altos ingresos en América Latina

“…El análisis a presentar en este trabajo se llevará a cabo a partir de dividir el período bajo análisis, 1990-2012, en dos tramos, 1990-2001 y 2002-2012, no sólo a partir del análisis de los datos, sino en función de homogeneizar el año de inicio de la década en consonancia con varios trabajos en la materia (ver, por ejemplo, Stein y Caro (2013)). En estos últimos, se plantea que la llegada al gobierno de regímenes políticos progresistas (a partir de 1999 en Venezuela y de 2000 en Chile, de acuerdo con Stein y Caro (2013)) ha sido un factor clave en el incremento de la participación del Impuesto sobre la Renta y los impuestos directos en la recaudación tributaria de la región.…”

“…En estos últimos, se plantea que la llegada al gobierno de regímenes políticos progresistas (a partir de 1999 en Venezuela y de 2000 en Chile, de acuerdo con Stein y Caro (2013)) ha sido un factor clave en el incremento de la participación del Impuesto sobre la Renta y los impuestos directos en la recaudación tributaria de la región.…”