Tax justice in Latin America in times of setback

Abstract

In modern nations, the tax structure is the fiscal expression of hegemony relations in a society. In that sense, the orientation of the fiscal issue is related to the political and economic project of the political forces that lead the State. The tax system, in Latin America, is based on indirect and regressive taxes. This characteristic determines the taxation profile and avoids reducing the inequality gap. On the contrary, direct and progressive taxes (on income and property) have little relevance. The redistributive improvement is achieved by social public spending. Giving the tax system a redistributive character is the main policy orientation that must be addressed to encourage productive accumulation, favor the creation of formal jobs and, above all, to alleviate the social inequalities determined by the market.