Why Low Tax Rates Hurt Latin America

Показать описание

Low tax rates in Latin America may not grab the headlines -- but they create a "vicious circle" in Latin America, argues Michael Shifter, former President of the Inter-American Dialogue. He says, "Low tax rates are really very, very concerning. And I think one of the one of the issues that I think, again reflects the lack of confidence in governments. Wealthy people don't want to pay taxes, because they don't believe that the government provides good services...Of course, this is self perpetuating. So [if] they don't pay them, the service is not going to be very good. But they don't pay because the services aren't good. So that is, I think, one of the really tremendous flaws and problems in these countries, Guatemala as the lowest tax rate in Latin America besides 80. And, and that's why the government is so ineffective in providing services for its citizens."

This interview from the FPA archives was recorded in 2019.