Title: More than revenue : taxation as a development tool /
Authors: Corbacho, Ana,; Fretes Cibils, Vicente, 1956-; Lora, Eduardo,; Corbacho, Ana.; Inter-American Development Bank.
Year: 2013
Subjects: Taxation Latin America.; Taxation Caribbean Area.; Fiscal policy Latin America; Fiscal policy Caribbean Area.; BUSINESS & ECONOMICS International Taxation.; Fiscal policy; Taxation
Abstract: Taxation in Latin America is largely viewed as a means of generating income to keep the government in business. In recent years, progress has been made towards increasing total revenue, but most countries in the region still lag well behind other countries with similar levels of development. More importantly, Latin American policymakers still largely ignore the potential of taxation to contribute to other important development goals. Yet dependence on consumption taxes such as the VAT and the regressive bent of the personal income tax structure have squandered the opportunity to attack the region's serious income inequality. In addition, the importance of efficiency in taxation has also been underestimated with a proliferation of inefficient ad hoc taxes such as those on bank transactions and exports. Governments have repeatedly missed the chance to influence consumption and production patterns by using taxes to effect relative price changes. "More than Revenue" aims to provide an up-to-date overview of the current state of taxation in the Latin America and Caribbean (LAC) region, its main reform needs, and possible reform strategies that take into account the likely economic, institutional, and political constraints on the reform process.
Contents: The tax forest -- Undressing the myths -- The politics of taxation -- Tax systems for a smooth ride -- Beware of informality -- Local taxes for local development -- Making the most of tax administration -- The trees : tax by tax-- Personal income tax : an empty shell -- Corporate income tax : the art of competing for investment and increasing revenue -- Value added tax : let it be -- Taxing commodities with the future in mind -- Protecting goods by taxing "bads" -- Heterodox taxes : the good, the bad, and the ugly harvesting for development -- Growing a reform agenda.