Going Where the Money Is: Strategies for Taxing Economic Elites in Unequal Democracies

32 Pages Posted: 19 Aug 2015

See all articles by Tasha Fairfield

Tasha Fairfield

London School of Economics & Political Science (LSE)

Date Written: 2013

Abstract

How can policymakers circumvent obstacles to taxing economic elites? This question is critical for developing countries, especially in Latin America where strengthening tax capacity depends significantly on tapping under-taxed, highly-concentrated income and profits. Drawing on diverse literatures and extensive fieldwork, the paper identifies six strategies that facilitate enactment of modest tax increases by mobilizing popular support and/or tempering elite antagonism. Case studies from Chile, Argentina, and Bolivia illustrate the effect of these strategies on the fate of tax reform initiatives. The analysis builds theory on tax politics and yields implications for research on reform coalitions and gradual institutional change.

Keywords: comparative politics, Latin America, economic elites, inequality, tax reform, politics of policymaking

Suggested Citation

Fairfield, Tasha, Going Where the Money Is: Strategies for Taxing Economic Elites in Unequal Democracies (2013). World Development, Vol. 47, 2013. Available at SSRN: https://ssrn.com/abstract=2646827

Tasha Fairfield (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
76
Abstract Views
375
rank
335,476
PlumX Metrics