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

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  • Bruno Martorano
Abstract
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. © 2018 UNU†WIDER. Journal of International Development published by John Wiley & Sons, Ltd.

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  • Bruno Martorano, 2018. "Taxation and Inequality in Developing Countries: Lessons from the Recent Experience of Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(2), pages 256-273, March.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:2:p:256-273
    DOI: 10.1002/jid.3350
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