Unjust Tax Collection


Tax collections in Latin America and the Caribbean total on average 18 percent of the region´s gross domestic product, an extremely low level considering its relative growth rate, according to a new study by the Economic Commission for Latin America and the Caribbean, or ECLAC.

“Latin American and Caribbean region not only fails to collect enough; it also collects poorly,” said the study, Time for Equality: Closing Gaps, Opening Trails, published on June 1.

With the exception of Argentina, Bolivia, Brazil, Costa Rica, Nicaragua and Uruguay, all the other countries in the region have lower tax burdens than they should have according to their GDP per capita, threatening their ability to form or strengthen a system with strong state welfare programs. Workers in most of those countries also lack job security.



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